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8 The law of agency.

contract, even to name his principal, so long as it is clearly

stated upon the face of the contract that the agent is con-

tracting on behalf of a principal.

Fled V. Murton (1871), L. R. 7 Q. B. 126 ; here the

contract upon which defendant was sued ran : " We have

this day sold for your account to our principal, so many

tons of raisins, etc. — (Signed) M. and W., brokers." It was

held that, but for a particular custom proved to obtain in

the London fruit market, the defendant would not have

been personally liable upon such a contract. In giving

judgment, Cockburn, C.J., said ; " I quite agree with the

propriety and soundness of the decision given by the Court

of Exchequer in the recent case of Fa/irlie v. Fenton

(1870), L. R. 5 Ex. 169, where the plaintiff contracted as a

broker for a jDrincipal named ; for in that case the principal

was named ; and I am of opinion that the same principle

would apply where the principal is not named, so long as

It appears on the face of the contract that the broker is

contracting as broker for a principal, and not for himself as

principal ; and in that case also the broker would not be

liable on the contract, if the principal failed to fulfil his

contract." Blackburn, J., also said ; " There is no doubt

at all in principle that a broker as such, merely dealing

as broker, and not as purchaser, makes a contract from the

Very nature of things between the buyer and seller, and

Is not himself either buyer or seller ; and that consequently,

where the contract says, " sold to A. B.," or " sold to my

principals," and the broker signs himself simply as broker,

he does not make himself by that cither the buyer or the

seller of the goods."

Southwell V. Boivditch (1876), 1 C. P. D. 374 ; here the

defendant, who was a broker, signed and sent to the plaintiff

a contract note in the following terms : " Have this day

sold by your order and lor your account, to my principal,

five tons of anthracene, etc. — (Signed) W. A. Bowditch."

Here the Court held that in the absence of any custom

BIGHTS AND DUTIES OF PRINCIPAL AND AGENT. 89

making the defendant personally liable, he was not liable

upon such a contract.

But though it is now the general rule oВЈ law that

an agent who makes a written contract for a principal is

not personally liable upon it, if it is clear upon the face of

such contract that he is only acting in a representative

capacity ; still it must be remembered, that in the absence

of words in the body of the contract, clearly indicating

agency, the mere addition to the agent's signature of such

words as, "Agent," "Broker," "Manager," or "Director,"

will not exempt him from liability ; seeing that such

words are regarded as words of description merely.

It must be pointed out here that whenever a principal

or an agent is entitled to sue upon a contract, such princi-

pal or agent is also liable to be sued ; and likewise, when-

ever a principal or an agent is liable to be sued upon a

contract, such principal or agent is also entitled to sue

upon such contract.

Mbinr/er Actien Gesellschaft v. Cla}/e (1873), L. R. 8

Q. B. 313 ; here Blackburn, J., said ; " I quite agree that a

man may as agent make a contract upon such terms as not

only to bind himself, but also to bind his principal ; in

other words, so that the principal shall be party to the

contract, and may then either sue or be sued. I must say

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