Page:United States Statutes at Large Volume 76A.djvu/287

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–191–

-191§ 2736. Exclusive credit to agent If exclusive credit is given to an agent by the person dealing with him, his principal is exonerated by payment or other satisfaction made by him to his agent in good faith, before receiving notice of the creditor's election to hold him responsible. § 2737. Person dealing with agent without knowledge of agency One who deals with an agent, without knowing or having reason to believe that the agent acts as such in the transaction, may set off against any claim of the principal arising out of the same, all claims which he might have set off against the agent before notice of the agency. § 2738. Instrument intended to bind principal An instrument within the scope of his authority by which an a^ent intends to bind his principal, does bind him if tiiat intent is plainly inferable from the instrument itself. § 2739. Principal's responsibility for agent's negligence, wrongful act, or omission Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by the agent in and as a part of the transaction of the business, and for his willful omission to fulfill the obligations of the principal. § 2740. Responsibility for agent's other wrongs A principal is not responsible for wrongs committed by his agent other than those specified by section 2739 of this title, unless he has authorized or ratified them, even though they are committed while the agent is engaged in his service. Subchapter IV—Obligations of Agents to Third Persons § 2761. Warranty of authority One who assumes to act as an agent thereby warrants, to all who deal with him in that capacity, that he has the authority which he assumes. § 2762. Agent's responsibility to third persons One who assumes to act as an agent is responsible to third persons as a principal for his acts in the course of his agency only when: (1) with his consent, credit is given to him personally in a transaction; (2) he enters into a written contract in the name of his principal, without believing, in good faith, that he has authority to do so; or (3) his acts are wrongful in their nature. § 2763. Surrender of property to third person If an agent receives anything for the benefit of his principal, to the possession of which another person is entitled, he shall, on demand, surrender, or so much of it as he has under his control at the time of demand, to that person, on being indemnified for any advance which he has made to his principal, in good faith, on account of the same; and is responsible therefor, if, after notice from the owner, he delivers it to his principal. § 2764. Application of chapter on persons The provisions of this subchapter are subject to the provisions of chapter 3 of this title.