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 ;.

Agency.

162 Sect.

carrying out the authority [l). Thus a power granted to the donee to manage certain property, followed by general words giving him full power to do all lawful acts relating to the donor's business and affairs, of what nature or kind soever, does not necessarily include authority to indorse bills, for the general words are construed as having reference to managing the donor's property, for which indorsing bills ma}^ not be incidental or necessary But a power to complete all contracts which the donee may deem necessary for a specific object, includes authority to obtain money for payment in respect of such contracts, where the payment is necessary and incidental to the completion (n).

2.

Construetion of Authority,

352. The authority conferred by power of attorney must be adhered to strictly. If the authority is exercised in excess of and

Limitsof authority

outside the reasonable scope of its special powers, the third party will be unable to make the principal liable (o) as where a power gave authority to sign contracts, acceptances, and other documents, and it was held that, while it gave power to sell or purchase negotiable instruments, it did not give power to pledge them (p).

observed.



When

353. The construction

of authorities given by power of attorney given rise to a multiplicity of cases, which serve to indicate fm^Hed^^^^^^ the extent to which the Court, in its strict rules of construction, will allow actual expressions to imply incidental powers. A power to deal with land gives authority to sell, the conditions of sale depending on the wording of the authority {q), but not to sell that portion included in a voluntary settlement (r). A general power gives authority to instruct a solicitor (s), to sue (t), and to submit to arbitration (a) but when given to act in partnership matters it does not give authority to dissolve the partnership (^) A power to sell land belonging to the donor does not give authority to exercise a power of sale vested in the donor as a mortgagee (c) nor does a general power to mortgage, sell, or otherwise deal with inci-



(l)

Be Wallace

D. 22, where, a solicitor being authorised to was held that he was justified in presenting a

(1884), 14 Q. B.

conduct legal proceedings, bankruptcy petition.

it

v. La Nauze (1835), 1 Y. & C. Ex. 394; compare Havper v. Godsell 5 Q. B. 422 (general words limited to exercise of privileges under a partnership) and see Lewis v. Eamsdale (1886), 55 L. T. 179. {n) Withinyton Y. Herring (1829), 5 Bing., per Park, J., at p. 459; and see Henley Y. Soyer (1828), 8 B. & C. 16 (authority to dissolve partnership and appoint any other person the donee might see fit includes authority to submit the accounts to arbitration). (o) Jacobs v. Morris, [1902] 1 Ch. 816, where a loan to the agent was made {})))

Esdaile

(1870), L.

E



without inquiry, and, as he had no general borrowing powers, it was held not within his authority to bind his principal. He Bouchout v. {p) Jonmenjoy Coondoo v. Watson (1884), 9 App. Cas. 561 Goldsmid (1800), 5 Yes. 210. iq) Hawksley v. Outrara, [1892] 3 Ch. 359. (r) General Meat Supply Association, Ltd. v. Bouffler (1879), 41 L. T. 719.

(s)

Ex parte Frampton

{t)

Gray

(a) -

(1859), 1 De G. F. & J. 263. Pearson (1870), L. E. 5 C. P. 568. Henley v. Boper (1828), 8 B. & C. 16 and see Goodson v.



Camp. 163. {h) Harper v. Godsell (1870), L. E. 5 Q. B. 422. (c) Be Voiuson and Jenkins, {1904] 2 Ch. 219.

v.

Broole (1815), 4