If a person knowingly permits another to act as his agent, he cannot afterwards repudiate the agency. For example, A stands by and watches B sell A's horse to C. Although B had no authority to make the sale, A, by his conduct, cannot claim there was no agency.
An agent's assertion of agency does not of itself constitute an agency. If A, without B's knowledge, claims to C to have authority to sell B's horse and does attempt the sale, title to the horse does not pass to C, because A had no authority to make the sale. A mere declaration of authority on the part of the agent without the knowledge or consent of the principal does not create an agency.
43. Purposes for Which an Agency May be Created. With the exception of fulfilling contracts for personal services, a person may do, through an agent, anything he may lawfully do by himself. For example, A employs B, an artist of fame, to paint a picture. Manifestly B cannot employ a student or another artist to paint the picture. A contracted for B's personal skill and work, and cannot be made to accept the work of another. In the majority of business transactions, however, the personal element does not enter. The thing to be done, or the article to be furnished, is the feature of most contracts. By whom the thing is done, or by whom the article is furnished, does not matter. For example, A purchases one hundred bushels of wheat from B. B delivers the wheat through his agent. Ordinarily A cannot, nor does he wish to complain. A contracts with B to have B furnish him an oak chair of given dimensions. B employs C to make and deliver the chair. A cannot complain so long as the chair corresponds to the terms of the contract.
A party cannot do through another what he himself cannot lawfully do. For example, a party cannot employ an agent to purchase votes for him. Neither can a person lawfully corrupt legislators by means of an agent, nor lawfully commit a crime by means of an agent.
44. Ratification of Agency. Where a person assumes to act as an agent for another without authority, or in performing an agency, exceeds his authority, he does not bind the person for whom he assumes to act, unless such person subsequently, with knowledge of the fact, consents to be bound thereby. Such assent is known in law as ratification.
A person cannot ratify an act which he, himself, has no power to perform. For example, A, pretending to act for B, offers C, a legislator, one hundred dollars ($100.00) to vote against a certain measure. B cannot ratify this act, since he himself cannot lawfully perform it. If however, A, knowing that B desires a certain rare picture, finds it and orders it in B's name, B may ratify the act by accepting and paying for the picture.
MAIN READING ROOM, U.S. CONGRESSIONAL LIBRARY, WASHINGTON, D. C..
In Center of Central Circular Desk, is the Housing for the Book-Handling Machinery. Card Catalogue in Foreground. View Facing Entrance. The Corinthian Order has been Used.