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1 Ilatcli r. Taylor, 10 n. II. 538, 548.

2 Howell V. Graff, 25 Nel). 130; Byrne V. InIassasoit Packing Co., 137

Mass. 313. See Ewart on Estoppel, vp. 474-483.

CONTRACT FOR DISCLOSED PRINCIPAL. 135

the like act of a public agent is otherwise, for the reason that

It is better that an individual should occasionally suffer fi-om

the mistakes of public officers or agents, than to adopt a rule

which, through improper combinations or collusion, might be

turned to tiie detriment and injury of the public." ^

§106. Same. — Elements of authority.

Several elements combine to make up what is termed the

apparent scope of the agent's authority, or that appearance of

authority upon which the public may rely. These ai*e (1) the

powers actually conferred ; (2) the powers necessarily or

reasonably incidental to those actually conferred ; (3) the

powers annexed by custom or usage to those actually con-

ferred ; (4) the powers which the principal has by his con-

duct led third persons reasonably to believe that his agent

possesses.^

(1) Powers actually conferred. — The principal is, of course,

bound by what he expressly authorizes. On the other hand,

he is bound by no more than he actually authorizes in cases

where the third party knows the exact terms of the authority.

This is especially true of authority conferred in a formal

power of attorney. Such powers of attorney are construed

as giving only the authority actually expressed ^ and such

medium lowers as are necessary for the effective execution

of those so expressed.* " It is as fundamental as it is ele-

mentary in the law of agency that a formal instrument con-

ferring authority will be construed strictly, and can be held

to include only those powers which are expressly given, and

those which are necessary and essential to carry into effect

those which are expressed." В° Thus it has been held that a

1 Whiteside v. United States, 93 U. S. 247, 256-257, citing Story on

Agency, В§ 307 В«; Lee v. Munroe, 7 Cranch (U. S.), 366; Mayor v. Esch-

bach, 18 Md. 270, 282. As to liability of public agent for his own acts,

seejoos/, В§ 203.

2 Huntley v. Mathias, 90 X. C. 101.

3 Bryant v. Bank, 1893, App. Cas. 170; Lewis v. Ramsdale, 55 L. T. R.

179 ; Gilbert v. How, 45 Minn. 121; Craighead v. Peterson, 72 X. Y. 279.

4 Howard v. Baillie, 2 H. Bl. 618; Le Roy v. Beard, 8 How. (U. S.)

451 ; Peck v. Harriott, 6 S. & R. (Pa.) 146.

6 Harris v. Johnston, 54 Minn. 182; Penfold v. Warner, 96 Mich. 179.

136 PKiNarAL and tiiikd takty.

j.owcr of attorney to an agent to sell all lands owned by the

donor of the power in a certain county would not be construed

to cover lands purehast-d by the donor subsctpient to the

execution of the power.i But this has been criticised as too

strict a construction.- In general tiie formal instrument is

construed strictly as to its terms and is not to be extended to

the authorization of acts beyond those specified, and to those

onlv whi'U done in the i)rincipars business and for his benefit.^

Where the instrunu-nt is capable of two interpretations, and

the agent and third party deal in the light of one of them in

good faith, the princii)al is Ijound even though he intended it

to mean otherwise.^ F>ut where the [mwer hxes a limit to the

agent's transactions for his principal, and the agent represents

that he has not yet exceeded the limit, it seems the principal

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