This section is from the book "Popular Law Library Vol3 Contracts Agency", by Albert H. Putney. Also see: Popular Law-Dictionary.
The manner of executing the contract depends upon the kind of contract that is to be entered into. It may be a simple oral contract, or a simple contract in writing, or a contract to be evidenced by a negotiable instrument, or it may be a specialty, that is, a contract under seal. If the contract to be made is a simple oral agreement, it may be made on behalf of the principal in the same way any other such contract may be made, the agent only being required to inform the third person as to his principal, and to have a clear understanding as to the terms of the contract.2
If the agent, by authority of the principal, makes a written contract, he properly will indicate in the body of the contract that it is his principal's contract and not his own, and in the signature place the name of the principal first, followed by his own, as agent, as John Smith, by Thomas Brown, his agent.3 There are many possible ways of signing such a contract, but the agent must avoid the use of such a signature as would not, by apt words, bind the principal, as for instance; the signature Thomas Brown, agent of John Smith, would ordinarily bind the agent only,4 such words, as agent, president, trustee, etc., after the name of the agent, are generally regarded as merely descriptive of the agent, and do not of themselves reveal an agency, and under the doctrine of descriptio personae the agent renders himself personally liable where they intend to bind their principal, but fail to do so under such a loose drawn contract.5 If an agent executes a negotiable instrument, he must see that the principal's name appears thereon as only the parties to such a contract are bound on the same, the instrument speaks for itself, and its plain terms cannot be varied by parol testimony. The agent, then, in drawing such a contract, should plainly disclose his principal in the body and signature to the instrument with reasonable certainty.6
1 Olephant vs. McNair, 41 Barb. (N. Y.), 446.
2 Abbey vs. Chase, 6 Cush. (Mass.), 56.
In making a contract under seal for his principal, the agent should name his principal as grantor, or the party who contracts, and state also that the act is done by him as agent.7 The covenants of the deed should read the same way, showing first the principal's name, and stating the covenant is made by his attorney or agent. The testimonium clause and signature should be also worded to show it is the principal who set his hand and signs his name, etc., and that it is drawn by his attorney.
3 Tucker Mfg. Co. vs. Fairbank,
98 Mass., 101. 4 Fiske vs. Eldrige, 12 Gray, Mass.,
474; Seaver vs. Coburn, 10
Cush. (Mass.), 324.
5 Taft vs. Brewster, 9 Johns
(N. Y.), 334. 6 Bradlee vs. Boston Glass Co., 16
Pick. (Mass.), 347. 7 Lutz vs. Linthicum, 8 Peters (U.
S.), 165.
The above way of executing a deed is not the only way, but it is the most proper way.8 The agent should also be careful to follow the particular rules of the jurisdiction in which the contract is made.
 
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