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 Agency.

234 Sect.

4.

490. The death

or, apparently, the insanity of an agent deteragency, which rests on personal relationship (r). A by Opera- joint agency is determined by the death of any one of the joint tion of Law. agents (r)

Termination mines

the .

Death or insanity of agent.

Bankruptcy of principal.

Solicitor

acting for

bankrupt principal.

491. Except as stated above (s) with regard to irrevocable authothe authority of an agent is, as a general rule, determined by the bankruptcy of the principal {t). But mere formal acts in completion of a transaction already binding on the principal may be performed by the agent under his authority after the principal's bankruptcy {u), and any bond fide transaction of the agent under his authority before the date of the receiving order, and without notice of any available act of bankruptcy, is a valid transaction, and for that purpose the authority may be treated as still existing (a). Most of the cases arising under the latter exception relate to the authority of solicitors. Where a solicitor, even after an act of bankruptcy by his principal of which he has notice, receives authority from the principal to act for him, and payment therefor, for the express purpose of opposing bankruptcy proceedings, the authority is not terminated as from the act of bankruptcy (and payment is not recoverable by the principal's trustee in bankruptcy) upon the principal being adjudicated bankrupt within three months from the act of bankruptcy (b). But this rule will not be extended so as to prevent the termination, as from the act of bankruptcy, of the authority of a solicitor who has notice of an act of bankruptcy, where his authority relates to other acts than resisting bankruptcy proceedings (c). Where, however, authority is given before the act of bankruptcy, and a lump sum paid to include all services, then, though some of such services may be rendered after the act of bankruptcy, the authority is not terminated (^0. Where an act of the agent itself constitutes the act of bankruptcy, such act is not avoided by the bankruptcy, for the bankruptcy only relates back to the completion of the act, and the authorit}^ is therefore not determined until completion (e). rities,

(r)

(s) {t)

Friend v. Young, [1897] 2 Ch. 421 Fool v. Fool (1889), 58 L. J. (p.) 67. See p. 228, aiite. Dawson v. Sexton (1823), 1 L. J. (o. s.) (cH.) 185. See title Bankruptcy

AND Insolvency. {u)

Dixon

V.

Eioart (1817), Buck. 94;

Marhmck

v.

Hardingliam (1880), 15

Ch. D. 339. {a) Ex parte M'Donnell (1819), Buck. 399; Ex parte Snowball, Re Douglas (1872), 7 Ch. App. 534; Bankruptcy Act 1883 (46 & 47 Vict. c. 52), s. 49; Re Oriental Bank Corporation, Exparte Guillemin (1884), 28 Ch. D. 634. The same rule applies in the winding up of a company where the company's agent has no notice of winding up proceedings. (&) Apparently on the ground of public policy [Re Sinclair, Ex parte Fayne

(1885), 15

a B. iD.616).

Ex parte Minor, [1893] 1 Q. B. 455 Re Wliitlock and Jackson, Re Beyts aiid Craig, parte the Official Receiver (1893), 63 L. J. (q. b.) 245 Ex parte the Trustee (1894), 70 L. T. 561 ; Re Mander, Ex parte the Official Receiver (1902), 86 L. T. 234. {d) Re Charhuood, Ex parte Masters, [1894] 1 Q. B. 643; and see Re Whitlock and Jackson^ supra. (e) Ex parte Helder, Re Lewis (1883), 24 Ch. D. 339. (c)

Ex

Re

Pollitt,