purchase price of the cigars. X defends on the ground that A having had authority to sell, had implied power to collect and that the payment to A discharged the debt. His defense failed. Authority to sell does not imply authority to collect. 330. P engaged A as his attorney and through him loaned X $8,000 on bond and mortgage for five years. P left the papers with A and authorized him to collect the interest but not the principal. After the principal became due A produced the bond and mortgage and received from X two payments of $1,000 each. Later A went to X, told him he had the bond and mortgage in his possession, but did not exhibit them, and demanded of X an additional payment, whereupon X gave him another $1,000. A then sold the bond and mortgage, forging P's name to an assignment and then collected the remaining $5,000 from X. It will be noticed that A had authority to collect the interest. This, coupled with his possession of the bond and mortgage, gave him apparent authority to collect the first $2,000. As to the third $1,000, the court applied the rule that "information proving to be truthful amounts to knowledge," and decided that A also had apparent authority to collect it. When A parted with the bond and mortgage he divested himself of apparent authority so that P could recover from X the last $5,000 paid to A.1 5. The scope of authority of a general agent is not limited by secret instructions. One who deals with a special agent is bound to inquire into the scope of his authority, but he is not bound by instructions to the agent which the principal intends shall be kept secret. 1 Facts taken from Crane v. Gruenewald, 120 N. Y. 274. For other cases see Central Trust Co. v. Folsom, 26 App. Div. (N. Y.) 40; Bickford v. Meuier, 107 N. Y. 490; Graves v. Horton, 38 Minn. 66; Johnson v. Hurley, 115 Missouri, 513; Butler v. Mapes, 9 Wallace (U. S. Supreme), 766. EXAMPLE 331. A is given P's horse to sell "at a good price." A sells the horse to X for a reasonable amount. P is bound. If A had been instructed to sell the horse for as much as he could get over $100, P would not be bound if A sold the horse for less than $100.1 347. Principal's obligations to agent in general.—The relation of an agent to his principal is fiduciary and each, therefore, owes a high duty to the other. The duty resting upon the principal may be subdivided into compensation, indemnification and reimbursement. 348. Agent's right to compensation. The agent is entitled to the reward or commission provided in an express contract or, where no express provision is made, to reasonable or the customary compensation for his services. If all the conditions precedent are fulfilled, the agent's right is not affected by the principal's failure to avail himself of the services. Where an agent's acts are ratified he will become entitled to compensation, but the ratification must be an out and out ratification and not a mere attempt on the part of the principal to avoid further loss on the unauthorized acts of his agent. Where the agency is revoked by a principal the following rules apply: 1. If the revocation be wrongful, i. e., before the contract of agency expires and without good cause, the agent has one of three remedies. (a) He may treat the contract as existing and sue for each installment of compensation as it falls due. In some states, including New York, this is not allowed. After suit is brought for one installment the contract comes to an end. 1 Hatch v. Taylor, 10 N. H. 538. (b) He may treat the contract as rescinded and sue for the reasonable value of his services already performed. (c) He may treat the contract as broken and sue for breach. The agent is bound to seek other employment immediately and to subtract his new salary from the promised compensation under the old contract to ascertain the damages. 2. If the revocation be rightful the agent is not entitled to damages, but may have reasonable compensation for his services then performed, unless his discharge was caused by gross misconduct, incompetence or negligence. 3. If the revocation is caused by impossibility of performance the agent is entitled to the reasonable value of his services. An agent may not recover for services rendered in an illegal employment nor where he has renounced his contract without good cause before its expiration. Some courts allow the agent the reasonable value of his services less the damages caused by the breach where the agent renounces after having performed a substantial part of the contract. EXAMPLES 332. P engages A to negotiate a loan on P's house at 5 per cent interest for three years. A procures a person willing and ready to lend the desired amount on the desired terms but P refuses the proferred loan. A may recover the reasonable value of his services. 333. P engages A as a salesman for a period of six months at a salary of $100 a month and expenses, but discharges him at the end of the month. A may sue for the reasonable value of the month's services or he may sue for the whole $600, less any sums he may be able to earn during the ensuing months. 349. Double commissions.-Ordinarily a person cannot serve two masters faithfully. An agent cannot drive a good bargain for the seller and for the purchaser, and inasmuch as good faith is demanded of an agent he will not be allowed to recover any compensation where each principal is a third person in respect to the other and to the agent. Two exceptions are made to this rule. If both principals have full knowledge of the agent's dual relations and consent thereto, or if the agent's services are completely rendered when he brings the parties together and they then enter into their own negotiations, the agent will be entitled to double commissions. 350. Agent's right to indemnification. The principal is bound to indemnify the agent for any charges the latter may be compelled to pay by reason of innocently following instructions. But if the act is illegal and the agent knew it to be he cannot look to his principal for recovery. EXAMPLE 334. P tells A to go upon a neighboring field and drive a cow into the road. It transpires that the cow belongs to X and that X owned the field. If the cow be lost X may sue A, but A may recover from P if he did not know the cow or the field belonged to X, and if he had no good reason for knowing. 351. Agent's right to reimbursement.-An agent is entitled to reimbursement for all reasonable and necessary outlays not due to his own fault or negligence, unless he knew he was working for an illegal end. 352. Agent's liens.-An agent has a special lien on his principal's property for compensation for services performed in relation to that property. It is a possessory lien and ends when the agent parts with posses sion. In the case of factors, bankers and attorneys a lien for the general balance of accounts exists in favor of the agent. EXAMPLES 335. P engages A to purchase ponies for him. At the end of the agreed purchasing trip P owes A $100. A then goes on another trip and returns with five ponies each worth $100. He refuses to turn these over till all his salary is paid and the $100 arrears. P tenders the salary due on account of the second trip and then brings an action to get possession of the five ponies. He will succeed, for A's lien for the $100 attached only to the horses purchased on the first trip. 336. A, an attorney, draws up a contract for X and advises him in the establishment of a business. He may retain any papers belonging to X which may come into his possession, whether they relate to either of these matters or not, until his bill is paid. 353. Relations of principal and agent to third persons in general.-As was pointed out in section 334, the relation of agency presumes the existence of a third person who is brought into contractual relation with the principal by the agent. In some cases, a principal may become obligated to total strangers through the wrongful acts of his agent and again the agent, though seeking to bind his principal, may make himself alone liable. The rights and liabilities of principals and agents in respect to third persons and to strangers forms the most important part of the subject of agency. 354. Where the principal alone is bound.-Where an agent acts within the apparent scope of his authority or where his contract is ratified, the principal alone is bound. 355. Where the agent alone is bound.-Where an agent makes a contract ostensibly for his principal but |