Stevens v. Whole Wheat Milling Co.
Stevens v. Whole Wheat Milling Co.
Opinion of the Court
Action on a promissory note given by defendant to a newspaper advertising contest concern-, and by it. indorsed to plaintiff as collateral security, The defense was a partial failure of consideration and that plaintiff was not a bona fide holder. Trial to the court. Findings, conclusions, and judgment for plaintiff. Defendant appeals.
“Important. — Our agent is merely a soliciting salesman, and all orders are subject to our approval or disapproval. Purchaser must, therefore, see to it that all arrangements pertaining to this order are shown hereon either in printing or writing, as none others will be recognized. This order is given with a full understanding of all the conditions hereof, and after reading same.”
“As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.”
“Instructions modifying or limiting the authority of the agent, which are known to a person dealing with him, are as binding upon such person as they are upon the agent, and he can acquire no rights against the principal by dealing with the agent contrary thereto.” 2 C. J. 569. § 1676 C. C. (Rev. Code 1919, § 1258).
The further agreement entered into by the agent was simply void because of the want of authqrity in the agent to make a binding contract in the manner it was made, of which want of authority the appellant had notice.
The appellant knew that the agent was without authority to enter into any contract or agreement except by writing or printing on the agreement itself. If the further agreement had been so made, it necessarily would have come to the knowledge of the principal.
The judgment and order appealed from are affirmed.
Reference
- Full Case Name
- STEVENS v. WHOLE WHEAT MILLING COMPANY
- Status
- Published