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Unformatted text preview: be used by Savellon. Such a determination is indispensable to an inquiry into the extent
or scope of his authority.
Every person dealing with an agent is put upon inquiry and must discover upon his peril the authority of the
agent. If he does not make such inquiry, he is chargeable with knowledge of the agent's authority,
and his ignorance of that authority will not be any excuse. Persons dealing with an assumed agent, 75 whether the assumed agency be a general or special one, are bound at their peril, if they would hold the
principal, to ascertain not only the fact of the agency but also the nature and extent of the authority, and in
case either is controverted, the burden of proof is upon them to establish it. American jurisprudence
summarizes the rule in dealing with an agent as follows:
A third person dealing with a known agent may not act negligently with regard to the extent of the agent's
authority or blindly trust the agent's statements in such respect. Rather, he must use reasonable diligence
and prudence to ascertain whether the agent is acting and d...
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This document was uploaded on 03/11/2014.
- Fall '14