This section is from the book "The Law Of Contracts", by Theophilus Parsons. Also available from Amazon: The law of contracts.
(e) Daniel v. Adams, Ambl. 495. And the incidental means the agent resorts to in carrying out bis authority must be those which usually attend an agency of that kind: if an extraordinary exigence occur he has no right to have recourse to extraordinary means to meet it. Haw-tayne v. Bourne, 7 M. & W. 595.
1 Thus a mercantile firm is liable for the necessary horse-hire of an agent selling by sample, although the latter was furnished with money for that purpose and was forbidden to pledge the firm's credit, Bentley v. Doggett, 51 Wis. 224; a person held out as manager of a hotel binds the hotel-keeper by his purchases of necessary supplies on credit, Beecher v. Venn, 35 Mich. 466; an oral contract of insurance made by a local agent binds the company, Putnam v. Home Ins. Co. 123 Mass. 324; a principal is liable for misuse of a hired horse by an agent whose duty includes travelling in districts where it is necessary or usual to make use of horses to get from place to place, Huntley v. Mathias, 90 N. C. 101.
2 Nor can any agent authorized to settle a claim or dispute bind his principal by submitting it to arbitration. Huber v. Zimmerman, 21 Ala. 488; Mich. Central R. R. Co. v. Gougar, 55 Ill. 503.
(g) Holt, C. J., Anon. 12 Mod. 514; Lord Ellenborough, Wiltshire v. Sims, 1 Camp. 258; Van Allen v. Vanderpool, 6 Johns. 69; Robertson v. Livingston, 5 Cowen, 473; James v. McCredie, 1 Bay, 294; Delafield v. Illinois, 26 Wend. 22.3; Stoddard v. Mcllwain, 7 Rich. L. 525; Burks v. Hubbard, 69 Ala. 379; School District v. AEtna Ins. Co. 62 Me. 330.
(h) Barksdale v. Brown, 1 Nott & M. C. 517; Walker v. Smith, 4 Dallas, 389. And the principal may also maintain trover against the vendee. Holt, C J., Anon. 12 Mod. 514; and see Wiltshire v. Sims, 1 Camp. 258. - An agent to sell has no power to barter, and if he undertake to do so, the principal may recover the goods, although the party receiving them was ignorant that the agent was not the owner. Guerreiro v. Peile, 3 B. & Ald. 616. - A simple authority to sell will not authorize a sale at auction. Towle v. Leavitt, 3 Foster (N. H.), 360. - And it seems an authority to sell at auction will not support a private sale, although more is thus obtained than the agent was limited to in case of an auction sale. Daniel v. Adams, Ambl. 495. - At common law an agent cannot pledge the goods of his principal without special authority. Pat-erson v. Tash, 2 Stra. 1178; Daubigny v. Duval, 5 T. R. 604; De Bouchout v. Goldsmid, 5 Ves. 211; Rodriguez v. Heff-ermnan, 5 Johns. Ch. 417; Bott v. McCoy, 20 Ala. 578. This has been modified in England by various statutes (4 Geo. IV. c. 83; 6 Geo. III. c. 94; 5 & 6 Vict. c. 39). See Navulsbaw v. Brownrigg, 2 De G., M. & G. 441. And in several States of this Union statutory enactments have been made providing that any consignee, agent, or factor, having possession of merchandise with authority to sell the same, or having possession of any bill of lading, permit, certificate, or order for the delivery of merchandise with the like authority, shall be deemed the true owner thereof so as to give validity to the sale, disposition, or pledge of such merchandise as security for any advances, negotiable paper, or oilier obligation given on faith thereof. Kentucky, Laws, 1880, May 5, §§ 1 and 6, Maine, R. S. (1883), ch. 81, § i; Maryland, Rev. Code, 1878, p. 292; Massachusetts, Pub. Stat. ch. 71; Missouri, Laws of 1869, p. 91; Ohio, R. S. (1886), § 3216; Pennsylvania, Brightly's Purdons Digest, p. 773; Rhode Island, Pub. Stat p. 332. By the statutes of some of the States the pled cannot retain the merchandise if he bad notice that the factor was not the true owner before be made the advances, for which the merchandise was pledged as security. But the statute of Massachusetts provides that the pledge shall hold good, " notwithstanding the person making such advances upon the faith of such depositor pledge may have had notice that the person with whom he made such contract was only an agent," provided the pledgee make the advances in good faith believing that the agent had authority to enter into the contract. - If the merchandise was pledged to secure antecedent advances, the pledgee acquires no other right or interest in the pledge than was possessed or could have been enforced by the agent or factor at the time of making the pledge. See any matter which does not fairly fall within the business. (kk) So an authority to buy a certain lot of land or other special thing does not authorize the agent to sell or exchange it, (kl) or buy more or less. (km)
Statutes cited above.
(i) Symington v. McLin, 1 Dev. & B.
291. See post p. * 95, n. (w).
(h) Peters v. Ballistier, 3 Pick. 495; Nash v. Drew, 5 Cush. 422.
1 There is such a usage as to factors, Greely v. Bartlett, 1 Greenl. 172, 179.
If the power of an agent be given by a written instrument, which instrument is known to the party contracting with him, such instrument must be followed strictly, and the power given by it cannot be varied or enlarged by evidence of usage; (l)1 because the effect of usage is properly limited to the manner in which the power is to be exerised; and even in this respect it cannot control the language of the instrument, although it may aid in construing its words, or in supplying some that are needed. But an agent authorized to make a certain contract may bind his principal by one which while it differs in its precise terms is of the same legal effect; especially if it secures additional benefits to his principal. (ll)
An agent employed to answer particular questions, and withholding some facts material to the contract, about which no questions are asked, does not thereby vitiate the contract; (m) it would be otherwise if such agent were employed to make the contract. (n) A mere power to sell land gives the agent no power to convey. (nn)
It has been held that a power to sell carries with it a power to warrant; (o) but we think it the better rule, that an agent employed to sell, without express power to warrant, cannot give a warranty which shall bind the principal, unless the sale is one which is usually attended with warranty, in which case he may; (p) 2 thus an auctioneer has, in general, no implied authority to sell with
 
Continue to: