In an Illinois case, Mrs. Trubey had her lawyer take from a bank vault a metal box of jewels and securities. She made parcels of these and designated to whom each parcel was to go. Then she put them in charge of her lawyer, but set no time for delivery. He receipted for them and placed them in another vault. Within three months Mrs. Trubey died. The matter came before the courts for adjudication. It went to the Supreme Court of Illinois, which held that the lawyer was undoubtedly Mrs. Trubey's agent to deliver the property; but when she died the agency was revoked by that fact, and that, as the property had not been delivered, it belonged to her estate and the people designated had no claim to it. The court expressed regret that it was not possible under the rules of law to give effect to what Mrs. Trubey evidently intended. It would seem that her lawyer was much at fault.2 2 The death of the agent also terminates the relation. When the relation of principal and agent is broken up by the sickness or other disability of the agent, the condition will be the same as when any other employee finds his term of employment broken by disability. In all such cases the general rule is that the agent or the employee is entitled to recover for the time he acted, whatever the services were worth to the principal or the employer. In a New York case it was held that when an agent is prevented by sickness or death from completing his contract, he or his executor is entitled to the value of the services actually rendered.3 Insanity of the principal has the same effect as death. If insane, a principal can no longer contract himself, and neither can he contract by an agent. The insanity of the agent terminates the relation because he has no longer the capacity to represent his principal. 2 Trubey v. Pease, 240 Ill. 513. Wolfe v. Howes, 20 N. Y. 197. The bankruptcy of the principal, and in some cases of the agent, would destroy the relation. In the case of bankruptcy, the bankrupt can no longer continue his business, but it is taken over by the court or the trustees in bankruptcy; and as he cannot do business himself he cannot do it through an agent. Insolvency would not have this effect. Chapter LXXXI.) (See If the principal parts with the subject matter, that terminates the agency. Notes: I. An agent can act only for a party who can act for himself. 2. An agent's authority ends when the capacity of the principal to contract ends. 3. An agent's incapacity to act ends the relation. § 152. An Agent with an Interest An agency coupled with an interest cannot be revoked by the principal nor will his death or insanity revoke it. When the agent is also himself interested in the matter to be accomplished, it places him in a different relation to the principal; and the principal cannot at will destroy the relation. If, for instance, an agent is employed to sell a horse, and the agreement is that he is to advance the principal one-half the price and pay himself when he sells the horse, the principal cannot prevent him from selling the horse. The agent would have an interest in the matter himself, and could go on and do that which he had agreed to do. The interest that causes a power of attorney to survive after death must be an interest in the subject matter of the agency and not in that which is produced by the exercise of the power. Note: 1. An agent with an interest in the property itself cannot be discharged, as he is to that extent a partner with the principal. REVIEW QUESTIONS I. How may the contract of agency terminate? If an agent continues to act after his engagement has ended, does he bind his principal? 2. How is it possible to prevent an agent's going to work for a competitor when his engagement terminates? If the principal revokes the authority of his agent, who must be notified? 3. What is the general rule as to the death or insanity of the principal? Why? What is the rule as to compensation when the contract is terminated by the death or disability of the agent? 4. What is the effect of bankruptcy? Of insolvency? What is the distinction between bankruptcy and insolvency? 5. A borrowed money of B, giving B as collateral a power of attorney to collect certain rents. A died. Was B's power of attorney terminated? Is the tenant's obligation discharged by payment to B? 6. What is the effect when an agent has an interest in the subject matter? Why? |