and unable to exercise an intelligent
direction of his business, his condition operates as a revocation or
suspension for the time being of his agent's authority. If on
recovering, he manifests no will to terminate his agent's authority,
it may be considered as a mere suspension, and his assent to acts done
during the suspension may be inferred from his forbearing to express
dissent when they come to his knowledge. Likewise an agent's insanity
terminates or suspends the agency for the time being unless he has an
interest of his own in the matter. Partial derangement or monomania
will not have that effect unless the mania relates to the agency, or
destroys the agent's ability to perform it.
Again, the marriage of a principal in some cases, unless a statute has
changed the common law, will revoke the power previously given,
especially when its execution will defeat or impair rights acquired by
marriage. Thus should a man give a power of attorney to another to
sell his homestead, but before effecting a sale the principal should
marry, his marriage would revoke the power. By marrying the wife
acquires an interest in the property which cannot be taken away from
her without her consent by joining in a deed of conveyance with her
husband. Likewise the marriage of a woman would operate to revoke a
power of attorney previously given by her whenever its execution would
defeat the rights acquired by her husband. An agent's marriage usually
will not affect the continuance of his agency.
When an agency is terminated it is often needful for the principal to
notify all customers for his protection, otherwise they might continue
to do business with the agent, supposing he was thus acting, and
involve him perhaps in heavy loss. This rule applies especially to
partnerships, each member of which is an agent with general authority
to do the kind of business in which it is engaged.
If the authority of an agent in writing is revoked, but is still left
with him and is shown to a third person who, having no knowledge of
the revocation, makes a contract with him, the principal will be held
for its execution.
Another rule of law may be given. The law assumes that any knowledge
acquired by an agent concerning his principal's business, will be
communicated to his principal, who is bound thereby. This rule though
is often difficult to apply. Thus, if a cashier of a bank should learn
that a note was defective, which was afterward discounted
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