clearly not in
the scope of his employment.

An agent must not act for both parties in any transaction unless this
is understood by both of them. Nor can an agent receive any personal
profit from a transaction. Whatever profit there may be should be
given to the principal. Thus if an agent is authorized to buy a piece
of property for his principal and buys it for himself, or hides the
transaction under the name of another, the principal, after
discovering what his agent has done, can proceed to obtain the
property.

An agent must be faithful and exercise reasonable skill and diligence.
Money belonging to the principal should be deposited in the
principal's name, or, if in the agent's name, his agency should be
added; otherwise if the bank failed the agent would be responsible for
the loss. Again, if the agent deposited the money in his own name the
true owner could proceed against the bank to recover it.

A principal is liable for the statements and representations of his
agent that have been expressly authorized. He is also liable even for
false and fraudulent representations made in the course of the agent's
employment, especially those resulting in a contract from which the
principal reaped a benefit. Even though the statements may not have
been expressly authorized, such authority may be implied by law
because they are the natural and ordinary incidents of the agent's
position. Thus the position of a business manager often calls for a
great variety of acts, orders, notices, and the like, and statements
made while performing them are regarded as within the line of his
duty.

An agency may end at a fixed time, or when the particular object for
creating it has been accomplished, or by agreement of the parties. In
many cases an agency is created for an indefinite period, and in these
either party can terminate it whenever he desires. There are some
limitations to this principle. Neither party can wantonly sever the
relation at the loss of the other; and if one of them did he would be
liable for the damage sustained by the other. Likewise if the agent
has an interest of his own in the undertaking the principal cannot
terminate it before its completion without the agent's consent. Such a
rule is needful for his security. The bankruptcy of a business agent
operates as a revocation of his authority, but not when the act to be
done is of a personal nature like the execution of a deed.

If the principal becomes insane