Van Dyke v. Van Dyke

51 S.E. 582, 123 Ga. 686
Supreme Court of Georgia·Decided August 3, 1905·Published·Cited by 21 cases

Opinion

Lumpkin, J.

(After stating the facts.) The general rule-with reference to holding an undisclosed principal liable upon the contract of his agent is thus stated in the Civil Code, § 3024: “ If an agent, fails to disclose his principal, yet, when discovered, the person dealing with the agent may go directly upon the principal, under the contract, unless the principal shall have-previously accounted and settled with the agent.” This is a codification of the law as it stood prior to the original Code of 1863, and is not an innovation resulting from legislative enactment. In Lenney v. Finley, 118 Ga. 718, it was held that “The rule that an undisclosed principal shall stand liable for the contract of his agent does not apply when the contract is under seal. Accordingly, a lease under seal, executed by an agent as-lessee in bis individual name, and which does not purport to-be executed on behalf of the principal, is not binding upon the latter, although it appears from extrinsic evidence that the lessee was the general agent to conduct a busiuess for his principal, and that the premises were leased to be used in such business.” We are asked to review and reverse this decision; but the court declines to change the ruling then made. An examination of the authorities cited in the opinion will show that-it was not without foundation. In Merchants Bank v. Central Bank, 1 Ga. 418, it was said: “In the execution of instruments under seal, by an agent, the general rule is, that it must-purport, upon its face, to be the contract of the principal, and. [689] his name must be inserted in it, and signed to it.” See also Compton v. Cassada, 32 Ga. 428 (compare Tenant v. Blacker, 27 Ga. 418; as to the execution of a power, see Terry v. Rodahan, 79 Ga. 278); Graham v. Campbell, 56 Ga. 258. In 1 Am. & Eng. Enc. L. (2d ed.) 1141, it is said: “It has been laid down as a common-law doctrine, that when a contract is made by an instrument under seal, no one but a party to the instrument is liable to be sued upon it, and therefore, if made by an agent or attorney, it must be in the name of the principal, in order that he may be a party, because otherwise he is not bound by it. • . . Some of the later decisions, however, qualify this doctrine by holding that when a sealed contract has been' executed in such form that it is in law the contract of the agent and not of the principal, but the principal’s interest in the contract appears upon its face, and he has received the benefit of the performance by the other party and has ratified and confirmed it by acts in pais, and tbe contract is one which would have been valid without a seal, the instrument will be binding on tbe principal.” In the note attached to the declaration there is nothing to indicate that it was executed by Yan Dyke v as agent, or that his wife was in any way connected with it. Indeed no reference to her or to any agency is made in the paper. See Briggs v. Partridge, 64 N. Y. 357; Mechem on Agency, §§701, 702, and note; Clark on Contracts, §275, p. 519; Bishop on Contracts, §§426, 1070; Evans v. Wells & Spring, 22 Wend. 324, in which several interesting opinions were filed. Some'courts hold that negotiable instruments do not fall within the general rule and that an unnamed principal can not be sued on them. See Clark on Contracts, § 275 (p. 519) and notes. It is contended that the rule applies only to instruments which were specialties at common law, as to which a seal was necessary; and that in cases where the instrument would be valid without a seal, the addition of a seal would not bring it within the rule. There are some authorities holding or tending to hold this to be the rule. See Stowell v. Elred, 39 Wis. 614; Wagoner v. Watts, 44 N. J. Law, 126; Shuetze v. Bailey, 40 Mo. 69, 75. The distinction drawn in this line of authorities, however, has not been followed in Georgia. In the case of Lenney v. Finley, supra, the instrument under considera[690] fcion was a lease for a term less than two years, which under our law conveyed no interest in land, and could have been executed without any seal. In Rowe v. Ware, 30 Ga. 378, it was held that “The signature of a sealed instrument by an agent, the principal not being present, is not binding on the principal, unless the authority of the agent be under seal.” In the body of the opinion it is said: “But it was said that the bond need not have been under seal, though in point of fact it was so, and therefore the seal might be disregarded. Not so. The question was, whether Taylor had authority to sign the names of Hooks and Herndon to this bond as it is- — sealed as it is. Whether a bond without a seal (to use, for convenience, a short but inaccurate phrase) would be valid, has nothing to do with the case, for there was no such paper in the case.” This was reaffirmed in Overman v. Atkinson, 102 Ga. 750.

Free access — add to your briefcase to read the full text and ask questions with AI

Van Dyke v. Van Dyke, 51 S.E. 582, 123 Ga. 686 (Ga. 1905).

51 S.E. 582 (Van Dyke v. Van Dyke) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Citizens Bank & Trust Co. v. Saunders, Stuckey & Mullis, Inc.
447 S.E.2d 632 (Court of Appeals of Georgia, 1994)
United States Fidelity & Guaranty Co. v. Coastal Service, Inc.
118 S.E.2d 710 (Court of Appeals of Georgia, 1961)
Millers National Insurance Co. v. Hatcher
22 S.E.2d 99 (Supreme Court of Georgia, 1942)
Trustees of Jesse Parker Williams Hospital v. Nisbet
7 S.E.2d 737 (Supreme Court of Georgia, 1940)
Willcox v. Cobb
197 S.E. 517 (Court of Appeals of Georgia, 1938)
Hollingsworth v. Georgia Fruit Growers Inc.
196 S.E. 766 (Supreme Court of Georgia, 1938)
Citizens Bank v. Hall
177 S.E. 496 (Supreme Court of Georgia, 1934)
Ponder v. Barrett
169 S.E. 257 (Court of Appeals of Georgia, 1933)
Harp v. First National Bank
161 S.E. 355 (Supreme Court of Georgia, 1931)
Hill v. Gratigny Plateau Development Corp.
52 F.2d 142 (Sixth Circuit, 1931)
Beacham v. Coe-Mortimer Co.
118 S.E. 441 (Court of Appeals of Georgia, 1923)
Henderson v. Citizens First National Bank
106 S.E. 549 (Supreme Court of Georgia, 1921)
Allen v. Montgomery
105 S.E. 33 (Court of Appeals of Georgia, 1920)
Gill v. Atlanta, Birmingham & Atlantic Railway Co.
102 S.E. 457 (Court of Appeals of Georgia, 1920)
Brown v. Nichols
99 S.E. 57 (Court of Appeals of Georgia, 1919)
Seawright v. Dickson
85 S.E. 625 (Court of Appeals of Georgia, 1915)
Dalton Buggy Co. v. Wood, Son & Bro.
67 S.E. 121 (Court of Appeals of Georgia, 1910)
Coaling Coal & Coke Co. v. Howard
61 S.E. 987 (Supreme Court of Georgia, 1908)
Andrews Co. v. National Bank of Columbus
58 S.E. 633 (Supreme Court of Georgia, 1907)
Hayes v. City of Atlanta
57 S.E. 1087 (Court of Appeals of Georgia, 1907)