There is also a duty on the part of the principal to protect his agent against unnecessary risks of injury. There is a duty on the part of a master to protect his servant. An agent or servant assumes the risks which naturally belong to the kind of work in which he is engaged. For example, A employs B to work in a saw mill. B assumes the risks incident to the employment. If a log accidentally rolls on him, A is not liable in damages, or if B carelessly cuts his hand on the saw, A is not responsible. But if the boiler explodes through carelessness of A, or if the saw flies to pieces on account of wear, and injures B, A is liable.
It is said that a principal or master is obliged to furnish his agent or servant with a reasonably safe place in which to work, and with reasonably safe tools and instruments with which to work. If the principal negligently fails to these things, and the servant is injured without negligence and carelessness on his part, the principal is liable to him in damages for any injuries.
47. Duties and Liabilities of Principal to Third Persons. When a person employs another to act for him, he is liable to third persons for the acts performed by the agent, so long as the agent acts within his authority. If A appoints B his agent to purchase live stock, A must pay third persons for the live stock purchased in his name by B. A person employing another to act as his agent is responsible to third persons for acts performed by the agent, which are within the apparent authority of the agent, as well as for the acts which are within the actual authority. If A appoints B his agent to purchase live stock and instructs him to purchase only hogs, but limits his authority to pay over five cents per pound, and B purchases at five and a half cents from C, who does not know of this limitation, A is bound by the contract. In giving an agent authority to do certain things, the agency carries with it the customary or implied authority to perform those acts incident to the general character of the agency. Thus, authority to purchase usually carries with it authority to fix the price. This is especially true of authority to sell.
Notice to an agent is notice to a principal. If an agent is authorized to sell goods, and in making a sale, is notified by the purchaser that the goods are purchased conditionally, in the absence of any special instruction limiting the power of the agent to sell conditionally, brought to the attention of the purchaser, the principal will be bound by the condition.
A principal is liable to third persons for his agent's torts or wrongful acts. If A directs his agent B to destroy C's property, A is liable to C for the damage done. A principal is not only liable to third persons for the damages done under his express direction by his agent, but he is also liable for the acts carelessly done by the agent in the course of his employment. A street car company employs B as motorman. B, carelessly and negligently, while operating a car runs over C. A is liable for B's negligent act. A principal, however, is not liable for the wrongful acts of his agent, performed outside of his employment. A, a street car company, employs B as conductor; C, standing on the street insults B. B stops his car, gets off and assaults and injures C. A is not liable, since B did not commit the act complained of while in the course of his employment, but went outside the course of his employment and acted on his own behalf.
48. Duties and Liabilities of Agent to Principal. An agent must obey the instructions of his principal. If he disobeys his instructions, he is liable to his principal for losses sustained. For example, if A employs B to sell flour at four dollars ($4.00) per barrel and B sells one hundred barrels at three dollars and seventy-five cents ($3.75), he must respond in damages to A for twenty-five cents a barrel. If, however, a discretion is given the agent, and he makes a reasonable mistake in using his discretion, he is not liable. If his instructions are not clear, and he carries out what he thinks are his instructions, which prove not to be the desire or intention of his principal, he is not liable.
An agent must account to his principal for money collected, and for moneys or property coming into his possession by reason of his agency. If he deposits money in his own name and it is lost through a bank failure, he is responsible to his principal. If he carefully deposits it in the name of his principal and the bank fails, he is not responsible.
An agent must act carefully in the performance of his principal's work, or as it is usually said, he must not act carelessly or negligently. He must act as a reasonably prudent man would act, under similar circumstances, or be liable to his principal in damages.
An agent must be loyal to his principal's interests. He cannot act secretly for another. He cannot act secretly as agent for both parties to a transaction. If he makes profits in his agency dealings, he must account for them to his principal. A employs B to sell Christmas novelties. B, shortly before Christmas receives a large order from C, who offers B one hundred dollars ($100.00) in excess of the regular price, if the goods arrive the following day. B succeeds in having the goods reach C the following day. B must account for the extra one hundred dollars ($100.00) to A, his principal.
An agent must faithfully carry out his agency. He is responsible for failure to act loyally. A employs B to sell butter. B obtains an offer from C, a rival butter manufacturer, to commence work for him on commission two weeks hence. B tells his customers not to purchase for two weeks, at which time he can make them a better price. B is liable to A in damages for this act of disloyalty. He has broken his contract.