Agent's Right of Action on Principal's Contracts

  1. Law
  2. Georgia Code
  3. Commerce and Trade
  4. Agency
  5. Rights and Liabilities of Agent as to Third Persons
  6. Agent's Right of Action on Principal's Contracts

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Generally, an agent shall have no right of action on contracts made for his principal. The following are exceptions:

  1. A factor contracting on his own credit;
  2. Where promissory notes or other evidences of debt are made payable to an agent of a corporation;
  3. In all cases where the contract is made with the agent in his individual name, though his agency be known;
  4. Auctioneers may sue in their own names for goods sold by them;
  5. In cases of agency coupled with an interest in the agent, known to the party contracting with him.

    In all these cases, payment to the principal before notice of the agent's claim is a good defense.

(Orig. Code 1863, § 2187; Code 1868, § 2183; Code 1873, § 2209; Code 1882, § 2209; Civil Code 1895, § 3037; Civil Code 1910, § 3609; Code 1933, § 4-404.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 3 Am. Jur. 2d, Agency, § 311 et seq.

2C Am. Jur. Pleading and Practice Forms, Auctions and Auctioneers, § 1.

C.J.S.

- 2A C.J.S., Agency, § 406 et seq.

3 C.J.S., Agency, §§ 501, 519, 520, 521, 528.

ALR.

- Validity of contract by agent for compensation from third person for negotiating loan or sale with principal, 14 A.L.R. 464.

Right of a factor, commission merchant, or produce broker to sell property to protect advances, 40 A.L.R. 387.

Validity of contract negotiated by agent acting for both parties, 48 A.L.R. 917.

Contract for development and sale of land as creating a power coupled with interest or supporting an equitable lien, 65 A.L.R. 1080.

When attorney's power deemed coupled with an interest so as to prevent discharge or revocation, 97 A.L.R. 923.

Statute of limitations: action by one secondarily liable on negotiable instrument against others secondarily liable, or against principal, as an action on such instrument, or an action on an implied promise, or a similar action, 143 A.L.R. 1062.

Agent's disregard of principal's instructions where power coupled with an interest, 162 A.L.R. 1182.


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