The principal is liable to third persons on all contracts made by his agent, so long as the agent acts within the scope of his real, or apparent authority. The agent being clothed with apparent authority, the principal cannot lesson his own liability by showing that he secretly instructed the agent to act with less authority where the third person acted in good faith in the contract made with the agent.3

It must be also understood, that the principal may sometimes be bound to third parties even where the contract has not been made under express or implied authority. The rule extends further, and binds the principal in all cases where the agent is acting within the scope of his usual employment, or in any case, where he is held out to the public, as possessing authority, even though he has violated his instructions or exceeded the same, and acted without authority.4 It is another case of where one of two innocent parties must suffer, and he whose act made it possible for the other to be misled, is the person who must suffer. The agent enjoyed presumably, his principal's confidence, or if he did not then the principal should have corrected the situation.

1 Smith vs. Bender, 75 I11., 492. 2 Day vs. Holmes, 103 Mass., 306. 3 Lobdell vs. Baker, 1 Metc. (Mass),

306; Rossiter vs. Rossiter, 8 Wend., N. Y., 494.