McIntosh-Huntington Co. v. Rice

13 Colo. App. 393
CourtColorado Court of Appeals
DecidedSeptember 15, 1899
DocketNo. 1641
StatusPublished

This text of 13 Colo. App. 393 (McIntosh-Huntington Co. v. Rice) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McIntosh-Huntington Co. v. Rice, 13 Colo. App. 393 (Colo. Ct. App. 1899).

Opinion

Bissell, P. J.

The application of a few tolerably well settled legal principles will dispose of the propositions on which the appellants rely, and they are equally conclusive of the contentions of the appellee. The appellee wholly relies on the general rule which prevails in the appellate courts. Where a case is controlled by the facts and the findings of the trial court are with the one who insists on the application of the doctrine those findings are usually accepted. We do not believe this rule applicable to the present appeal. The trial court rendered an opinion and therein stated his conclusions on the evidence which the appellee treats as findings of fact. He insists he may safely rest thereon, and that we are necessarily concluded by them and must affirm the judgment. We do not concede this proposition. There were no disputed questions of fact. There was no evidence respecting the antecedent negotiations between Percy and Rice, save that which Rice [400]*400gave in detailing the history of the transaction. With respect to that evidence we dismiss it from consideration because these negotiations were all merged in the written agreement which must be taken as the only expression of the contract, and all the testimony which Rice gave as to what occurred between him and Percy antecedently to its execution was inadmissible, and must be dismissed from consideration. It is equally true there was no dispute respecting the nature and character of Percy’s agency. The only evidence of that agency is found in the letter of delegation sent by the Mclritosh-Huntington Company to Rice, wherein that corporation states that Mr. Percy is in Denver and they have referred the matter to him, and trust he will be able to make some arrangement that will be satisfactory to all parties. This is the only specific grant of authority. The only other evidence about it is found in Rice’s testimony, and the further correspondence between the corporation and Rice wherein Percy is treated as their agent for the sale of machines and for the establishment of a Denver agency. We have then a record which exhibits the original appointment, with whatever limitations or extensions of power are to be found in the letters of the principal, coupled with evidence of the particular transaction about which the agent was appointed. The case then is one wherein there is no conflict of testimony, nor one in which there is any dispute. The court has found the facts, and has determined where the truth is. Substantially, it is an agreed case, and we have the right under these circumstances to look at the evidence and therefrom determine whether thereon the trial court has reached a correct conclusion. We shall therefore proceed to discuss the case on the basis of the record as presented, and determine the accuracy or inaccuracy of the conclusions embodied in the judgment, and the legal rights of the parties.

The general principles of the law of agency are well defined and the courts are agreed respecting their scope and application. The only difficulty which has been found is in the application of these principles to particular states of facts. The [401]*401trouble always lies in determining from tbe facts the character of the agency and the authority of the individual who has exercised the delegated power. Ever since the law on this subject was first declared law writers and judges have attempted to define the different sorts of agency. Many of the discrepancies which apparently exist have arisen from these attempts at definition. The profession, as well as the writers and judges recognize that there are many kinds of agency, either particular or special, general or universal. Without attempting to follow either jurist or law writer into this much disputed realm of definition, it may be safely said in this case that Percy was in no sense either a universal or a general agent; he certainly was not a universal agent, or as the books sometimes put it the dominus rerum, nor so far as the record discloses had he any general power to act for or on behalf of the corporation. He was doubtless clothed with authority to negotiate with Rice about tbe sale of machines and the establishment of an agency for this purpose. It was an agency to do a particular thing with reference to particular machines manufactured by this corporation. He was undoubtedly an agent to sell, but an agent to sell is one possessed of very limited authority which must be confined to the transaction in hand, and his power to sell is limited by the principle that the party dealing with the agent must in general ascertain the extent of his authority. It may be said that he was an agent for tbe purpose of establishing an agency. While this is true, an appointment of this description can only concern tbe designation of an agent to dispose of the property intrusted to his care, and with the powers and rights involved in the establishment of an agency to sell. Whether an agent to sell has power to sell on credit we need not discuss. This is clear, an agent to sell has in general no authority to purchase the property. At all events the law does not imply the right because of the appointment. His power is to sell to others. Whether this particular agency was broad enough to entitle bim to sell on credit is a matter which we need not consider because according to the terms of the agreement there was an apparent [402]*402sale on credit, an execution and delivery of the notes, and an acceptance of these notes by the corporation. To-this extent the power of the agent was not only embraced within the terms of the authority granted, but it was confirmed by the acceptance of the paper by the principal. We do not regard the letter as conferring on the agent unlimited power. Under these circumstances, the law always restrains the agent to the particular business of the principal and to that part of it which is the subject-matter of correspondence between the ageDt and his principal and between the principal and the third party. As a general proposition if the agent attempts to do that which is not within the apparent scope of his power, the party dealing with him is bound at his peril to ascertain the extent of the power which the agent possesses. These principles are recognized in all the cases, and only a few need be cited to support the proposition. Wood v. McGain, 7 Ala. 800 ; Gulick v. Grover, 33 N. J. Law, 463; Story on Agency, §§ 210, 211, et seq.; Billings v. Morrow, 7 Cal. 171; Martin v. Farnsworth, 49 N. Y. 555; Smyth v. Lynch, 7 Colo. App. 383.

These authorities might be multiplied and many cited illustrative of the general proposition and containing many specific instances of its application. While they might strengthen the opinion, we regard the labor incident to the examination as wholly unnecessary because the principle is well established. We conclude from the evidence that Percy was the special agent of the corporation with authority to sell machines, or to establish an agency for the purposes of sale. Under these circumstances if Rice dealt with him on any other basis the principal would not be bound. On the other hand Rice would be bound to ascertain any limitation on his authority, and could not hold the principal should the agent exceed Iris instructions. It therefore follows that when he undertook to deal with Percy with reference to the machines which had been shipped to Denver, he could only deal with him as the agent of -the corporation for the purpose of selling machines, or for the purpose of establishing an agency for their disposition in Denver. In total disregard of this apparent limitation [403]

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Bluebook (online)
13 Colo. App. 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcintosh-huntington-co-v-rice-coloctapp-1899.