§ 258. If the principal represents the agent as principal, he is bound by that representation. So, if he stands by and allows a third person innocently to treat with the agent as principal, he cannot afterwards turn round and sue him in his own name.6 Where an agent deals in his own name, the creditor may nevertheless resort to the after-discovered.princi-pal; but if the creditor, by his conduct, has caused the state of accounts between the principal and agent to be altered, his right is subject to the state of those accounts; for it would be unjust to call on the principal to pay, when the creditor has induced the principal to believe that he looked to the agent alone.1
1 Buller v. Harrison, 2 Cowp. 565; Cox v. Prentice, 3 M. & S. 344.
2 Newall v. TomUnson, Law R. 6 C. P. 405 (1871).
3 Horsfall v. Handley, 2 Moore, 5; s. c. 8 Taunt. 136; White v. Bartlett, 9 Bing. 378; Granger v. Hathaway, 17 Mich. 500 (1869).
4 Townson v. Wilson, 1 Camp. 396; Clark v. Johnson, 3 Bing. 424; Robson v. Eaton, 1 T. R. 62; Rogers v. Kelly, 2 Camp. 123; Smith v. Sleap, 12 M. & W. 588; Wakefield v. Newbon, 6 Q. B. 280; Ashmole v. Wainwright, 2 ib. 837; Snowdon v. Davis, 1 Taunt. 359. See Newall v. Tomlinson, Law R. 6 C. P. 405 (1871).
5 Williams v. Everett, 14 East, 597.
6 Ferrand v. Bischoffsheim, 4 C. B. (n. s.) 710 (1858), per Cockburn, C.J.