40. Who May be a Principal. A principal is one who appoints an agent. A, employs B to deliver goods; A is principal and B agent. Any person, natural or otherwise, competent to enter into a contract, may enter into a contract through an agent. There is one possible exception to this rule. It is a well recognized rule of law that an infant cannot appoint an agent. An infant may enter into a contract which is not void at law, but which is merely voidable. (See subject, "Infant" in Chapter on Contracts.) That is, an infant may lawfully make and carry out a contract. The law does not prohibit it. But the law will not compel an infant to carry out his contracts, except for necessaries. When it comes to the appointment of an agent, however, the law refuses to give an infant this power. By an infant is meant a person under legal age.
Any person of legal capacity may appoint an agent. In other words, a person may do through an agent the things he, himself, may do. An insane person, an idiot or a drunken person cannot appoint an agent. A corporation may do business through agents, limited only by its corporate capacity. A partnership may do business through agents, limited only by the purposes for which the partnership is formed.
41. Who May be an Agent. Any one, except a very young child and persons whose interests are opposed to those of the principal, may act as agent. A child may be employed to deliver goods, and thus make and complete contracts for his principal. Persons of unsound mind may serve as agents. Persons who cannot act as principal, through lack of capacity to contract, may act as agent for others. For example, A, fourteen years old, cannot be bound by a contract with B for the purchase of one hundred bushels of wheat, but A may be employed as agent by C, a competent person, to purchase of B one hundred bushels of wheat.
A person whose interests are opposed to those of his principal is disqualified from acting as agent. That is, a person cannot be agent for both parties to the same transaction. For example, if A is employed as traveling salesman by B to sell goods, he cannot serve as agent for C in the purchase of goods from B without the knowledge and consent of both B and C.
Artificial persons, such as partnerships and corporations, may act as agents. It is usually held that children under seven years of age cannot act as agents, by reason of tender age.
42. How Agents May be Appointed. Agents may be appointed by any act of the principal which shows that it is the principal's will that the agent shall act as the principal's representative.
Agents may be appointed by oral statement, by written document, by conduct on the part of the principal, or by ratification of an unauthorized act.
Most agencies are created by oral authority. Any word by which the will of the principal is manifested is sufficient. A tells B to order a barrel of flour from C. This constitutes B an agent for A. B's asking A if he shall order a barrel of flour from C, to which A nods, constitutes B, A's agent. A writes to B and requests him to order a carload of flour from C. This constitutes B, A's agent. B, without any authority from A, orders a car load of flour from C, which A accepts, and for which he promises to pay. This constitutes B, A's agent by ratification.
Some few contracts of agency must be in writing. A employs B to act as his salesman for a period of two years. As between A and B, the contract is not enforceable, by reason of the Statute of Frauds (see Statute of Frauds, chapter on Contracts). But as between A and third parties dealt with by B as agent, A cannot refute the agency.
Some contracts which must be made in writing, such as land contracts require the agent's authority to be in writing.