w would say that
he really was so, and B would be bound by his acts within a limit soon
to be explained. This, perhaps, is the more common way in which the
world learns of the authority of an agent's act. He does a great
variety of things which it is well known must be within the knowledge
of his principal or employer and, as they are known by the employer
and the employer says nothing in the way of disowning or repudiating
these acts, he is bound by them.

Sometimes, indeed, persons pretend to be agents for others when really
they have no authority to act. When this is done, and the person for
whom they are pretending to act finds out what they are doing, then it
is his immediate duty to take such action as the circumstances require
to disown the acts of such pretenders. If this is not done he may be
bound by them. His action in adopting or approving is called the
RATIFYING of an agent's act; and when this is done the agent's action
is just as valid as though authority had been given to him to act in
the beginning. The principal's conduct in thus ratifying an agent's
acts relates back to the time when the agent first began to act.

A SPECIAL AGENT is appointed to do a particular thing and this is more
often done in writing. Perhaps the most common illustration is the
appointment of some one to act for another at the annual meeting of a
corporation to vote on stock. Such a person is called a PROXY, and
persons often act as through another in this manner. Sometimes one
person serves as a proxy or agent for a very large number of
shareholders.

The liability of a principal for the acts of a general agent are very
different from his liability for the acts of a special agent. In the
former case the principal is said to be responsible for all the acts
of his agent that are within the general scope of his business. In
other words, if it is generally known that A is acting as the general
agent of B in conducting his business,--we will say managing his
cotton-factory,--A will bind his principal B for everything done by
him as general agent in conducting that business.

Suppose A was acting as a general agent of an insurance company and,
among other things, was told by the president or board of directors of
the company not to insure property in a given place below a stated
rate. Suppose a person should go to this agent, desiring to have his
property insured, but at a lower rate, and suppose that the agent
should finally yie