The principal will not be bound by his agent's contracts or agreements, if the agent has an adverse interest8 in the agency, and the third person has knowledge of this fact and the principal himself was not aware of it.

The principal is also not bound, where the agent acts outside of his authority or without any authority at all. The principal is not bound on an unlawful contract made by the agent, the law will not lend its aid to the enforcement of such contracts.9

When an agent is acting for another contrary to the terms of the agency, or is secretely watching or protecting a personal interest, the contract will not be binding on the principal.10

5 Exchange Bank vs. Rill, 107 Mass., 37; Briggs vs. Partridge, 64 N. Y., 357.

6 Thompson vs. Davenport, 9 Bain & Cress, 78; 1 Parsons on Contracts, 63.

7 Peterson vs. Grandesequi, 15

East, 62.

8 Switzer vs. Skiles, 3 Gilman, I11.,

529, 44 Am. Dec, 723. 9 Devlin vs. Brady, 32 Barb. (N. Y.), 518.

It is on the same principle, that an agent with authority to buy or sell, cannot buy of himself or sell to himself.