Davis v. Gordon

13 S.E. 35, 87 Va. 559, 1891 Va. LEXIS 109
CourtSupreme Court of Virginia
DecidedMarch 26, 1891
StatusPublished
Cited by17 cases

This text of 13 S.E. 35 (Davis v. Gordon) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Gordon, 13 S.E. 35, 87 Va. 559, 1891 Va. LEXIS 109 (Va. 1891).

Opinion

Richardson, J.

(after stating the case) delivered the opinion of the court.

The sole question to be determined is, were Chewning & Rose authorized, as the agents of John W. Gordon, to make the contract in question? The answer to this question depends upon the nature and extent of the authority conferred by John W. Gordon upon Ohewning & Rose, it not being denied by the former that the latter were his agents in a limited and restricted sense.

Agencies are commonly divided into two sorts—(1) a general agency; (2) special agency. A general agency properly exists where there is a delegation of authority to do all acts connected with a particular trade, business or employment. On the other hand, a special agency exists where the authority delegated is to do a single act. Thus, a person, who is authorized by his principal to execute all deeds, sign all contracts, or purchase all goods required in a particular trade, business or employment, is a general agent in that trade, business or employment. But a person, who is authorized by his principal to execute a particular deed, or to sign a particular contract, or to purchase a particular parcel of merchandise, is a special agent. Story on Agency, § 17. The same author, in § 18, says: “A person is sometimes (although, perhaps, not with entire accuracy) called a general agent, who is not appointed with powers so general as those above mentioned, but who has a general authority in regard to a particular object or thing; as, for example, to buy and sell a particular parcel of goods, or to negotiate a particular note or bill, his agency not being limited in the buying or selling such goods, or negotia[563]*563ting such note or bill, to any particular mode of doing it. 8o> an agent, who is appointed to do a particular thing, in a prescribed mode, is often called a special agent, as contra-distinguished from a general agent; and in § 19 it is said: “On the other hand (although this is not the ordinary commercial sense), a person is sometimes said to be a special agent, whose authority, although it extends to do acts generally in a particular business or employment, is yet qualified and restrained by limitations, conditions and restrictions of a special nature. In such a case the agent is deemed, as to the person dealing with him, in ignorance of such special limitations, conditions and restrictions, to be a general agent, although, as between himself and his principal, he may be deemed a special agent. In short, the true distinction (as generally recognized) between a general and a special agent (or, as he is sometimes called, a particular agent) is this: a general agency'does not impart an unqualified authority, but that which is derived from a multitude of instances, or in the general course of an employment or business; whereas, a special agency is confined to an individual transaction.”

The author, in this concise statement of the law, covers all the ground essential to the proper consideration of every practical distinction that may be taken between a general and a special agency. It is of the utmost importance to carefully discriminate between general agents and special agents, as to the rights and responsibilities, the duties and the obligations, both of principals and agents, as the principles applicable to the one frequently have no application whatever to the other. To perform this task successfully, and with due regard for the rights of all persons interested, it is important to keep constantly in mind what has been already stated—the distinction commonly taken between the case of a general agent and that of a special agent, the former being appointed to act in his principal’s affairs generally, and the latter to act concerning some particular object. In the former case, the principal will [564]*564be bound by the acts of his agent within the scope of the general authority conferred on him, although he violates by those acts his private instructions and directions, which are given to him by the principal, limiting, qualifying, suspending, or prohibiting the exercise of such authority under particular circumstances. But, on the contrary, in the case of a special agency, if the agent exceeds the special and limited authority conferred on him, the principal is not bound by his acts, but they become mere nullities, so far as he is concerned; unless, indeed, he has held him out as possessing a more enlarged authority. Story on Agency, § 126, and authorities there referred to; and among them, 2d Kent’s Com., sec. 41, pp. 620, 621 (4th Ed.); 3d Chitty on Com. & Manf., 198; Smith on Mercantile Law, 58-62 (2 Ed.); Fenn v. Harrison, 3 T.R., 757; Howard v. Braithwaite, 1 Ves. & B., 209, 210; Whitehead v. Tuckett, 15 East, 408.

The ground of this distinction, says Story, is the public policy of preventing frauds upon innocent persons, and the encouragement of confidence in dealings with agents. If a person is held out to third persons, or to the public at large, by the principal, as having a general authority to act for and to bind him in a particular business or employment, it would be the height of injustice, and lead to the grossest frauds, to allow him to set up his own secret and private instructions to the agent, limiting that authority; and thus to defeat his acts and transactions under the agency, when the party dealing with him had, and could have, no notice of such instructions. In such cases, good faith requires that the principal should be bound by the acts of the pgent, within the scope of his general authority; for he has held him out to the public as competent to do his acts, and to bind him thereby. The maxim of natural justice here applies with its full force, that he who, without intentional fraud, has enabled any person to do an act, which must be injurious to himself, or to another innocent party, shall himself suffer the injury rather than the [565]*565Innocent party, who has placed confidence in him. The maxim is founded in the soundest ethics, and is enforced to a large extent by courts of equity. Of course, the maxim fails in its application, when the party dealing with the agent has a full knowledge of the private instructions of the agent, or that he is exceeding his authority. Story on Agency, § 127.

The same author, after stating the exemplification of the rule in the civil law, as to the distinction between a general and a special agency, says: “The illustrations in our law of the same distinction between general agents and limited or special agents, may be familiarly seen in the common case of factors known to be such. They possess a general authority to sell; and if in selling they violate their private instructions, the principal is nevertheless bound. And it makes no difference, in a case of this kind, whether the factor (if known to be such) has been ordinarily employed by the principal to sell, or whether it is the first and only instance of his being so employed by the principal to sell; for still, being a known factor, he is held out by the principal as possessing, in effect, all the ordinary general authority of a factor, in relation to the particular sale. But if a common person, not being a factor, should be authorized to make a like sale, and he should violate his private instructions, and deviate from his authority in the sale, the principal would not be bound. In such a case, no general authority is presumed, and he who deals with such an agent, deals with him at his own peril; for, in such a case, the principal has not held the agent out as a general agent.

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Cite This Page — Counsel Stack

Bluebook (online)
13 S.E. 35, 87 Va. 559, 1891 Va. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-gordon-va-1891.