Agency
Cal. Civ. Code §§
2295 – 2357
Part 4, Title 9, Chapter 1, Articles 1–6
http://danfingerman.com/law/statutes/Cal_agency.html
Article 1
§
2295.
An agent is one who represents another, called the principal,
in dealings with third persons. Such representation is called
agency.
§
2296.
Any person having capacity to contract may appoint an agent,
and any person may be an agent.
§
2297.
An agent for a particular act or transaction is called a
special agent. All others are general agents.
§
2298.
An agency is either actual or ostensible.
§
2299.
An agency is actual when the agent is really employed by the
principal.
§
2300.
An agency is ostensible when the principal intentionally, or
by want of ordinary care, causes a third person to believe another to
be his agent who is not really employed by him.
Article 2
§
2304.
An agent may be authorized to do any acts which his principal
might do, except those to which the latter is bound to give his
personal attention.
§
2305.
Every act which, according to this Code, may be done by or to
any person, may be done by or to the agent of such person for that
purpose, unless a contrary intention clearly appears.
§
2306.
An agent can never have authority, either actual or
ostensible, to do an act which is, and is known or suspected by the
person with whom he deals, to be a fraud upon the principal.
§
2307.
An agency may be created, and an authority may be conferred,
by a precedent authorization or a subsequent ratification.
§
2308.
A consideration is not necessary to make an authority,
whether precedent or subsequent, binding upon the principal.
§
2309.
An oral authorization is sufficient for any purpose, except
that an authority to enter into a contract required by law to be in
writing can only be given by an instrument in writing.
§
2310.
A ratification can be made only in the manner that would have
been necessary to confer an original authority for the act ratified,
or where an oral authorization would suffice, by accepting or
retaining the benefit of the act, with notice thereof.
§
2311.
Ratification of part of an indivisible transaction is a
ratification of the whole.
§
2312.
A ratification is not valid unless, at the time of ratifying
the act done, the principal has power to confer authority for such an
act.
§
2313.
No unauthorized act can be made valid, retroactively, to the
prejudice of third persons, without their consent.
§
2314.
A ratification may be rescinded when made without such
consent as is required in a contract, or with an imperfect knowledge
of the material facts of the transaction ratified, but not otherwise.
§
2315.
An agent has such authority as the principal, actually or
ostensibly, confers upon him.
§
2316.
Actual authority is such as a principal intentionally confers
upon the agent, or intentionally, or by want of ordinary care,
allows the agent to believe himself to possess.
§
2317.
Ostensible authority is such as a principal, intentionally or
by want of ordinary care, causes or allows a third person to believe
the agent to possess.
§
2318.
Every agent has actually such authority as is defined by this
Title, unless specially deprived thereof by his principal, and has
even then such authority ostensibly, except as to persons who have
actual or constructive notice of the restriction upon his authority.
§
2319.
An agent has authority:
- To do everything necessary or proper and usual, in the ordinary
course of business, for effecting the purpose of his agency; and,
- To make a representation respecting any matter of fact, not
including the terms of his authority, but upon which his right to use
his authority depends, and the truth of which cannot be determined
by the use of reasonable diligence on the part of the person to whom
the representation is made.
§
2320.
An agent has power to disobey instructions in dealing with
the subject of the agency, in cases where it is clearly for the
interest of his principal that he should do so, and there is not time
to communicate with the principal.
§
2321.
When an authority is given partly in general and partly in
specific terms, the general authority gives no higher powers than
those specifically mentioned.
§
2322.
An authority expressed in general terms, however broad, does
not authorize an agent to do any of the following:
- Act in the agent's own name, unless it is the usual course of
business to do so.
- Define the scope of the agency.
- Violate a duty to which a trustee is subject under Section
16002, 16004, 16005, or 16009 of the Probate Code.
§
2323.
An authority to sell personal property includes authority to
warrant the title of the principal, and the quality and quantity of
the property.
§
2324.
An authority to sell and convey real property includes
authority to give the usual convenants of warranty.
§
2325.
A general agent to sell, who is intrusted by the principal
with the possession of the thing sold, has authority to receive the
price.
§
2326.
A special agent to sell has authority to receive the price on
delivery of the thing sold, but not afterwards.
Article 3
§
2330.
An agent represents his principal for all purposes within the
scope of his actual or ostensible authority, and all the rights and
liabilities which would accrue to the agent from transactions within
such limit, if they had been entered into on his own account, accrue
to the principal.
§
2331.
A principal is bound by an incomplete execution of an
authority, when it is consistent with the whole purpose and scope
thereof, but not otherwise.
§
2332.
As against a principal, both principal and agent are deemed
to have notice of whatever either has notice of, and ought, in good
faith and the exercise of ordinary care and diligence, to communicate
to the other.
§
2333.
When an agent exceeds his authority, his principal is bound
by his authorized acts so far only as they can be plainly separated
from those which are unauthorized.
§
2334.
A principal is bound by acts of his agent, under a merely
ostensible authority, to those persons only who have in good faith,
and without want of ordinary care, incurred a liability or parted
with value, upon the faith thereof.
§
2335.
If exclusive credit is given to an agent by the person
dealing with him, his principal is exonerated by payment or other
satisfaction made by him to his agent in good faith, before receiving
notice of the creditor's election to hold him responsible.
§
2336.
One who deals with an agent without knowing or having reason
to believe that the agent acts as such in the transaction, may set
off against any claim of the principal arising out of the same, all
claims which he might have set off against the agent before notice of
the agency.
§
2337.
An instrument within the scope of his authority by which an
agent intends to bind his principal, does bind him if such intent is
plainly inferable from the instrument itself.
§
2338.
Unless required by or under the authority of law to employ
that particular agent, a principal is responsible to third persons
for the negligence of his agent in the transaction of the business of
the agency, including wrongful acts committed by such agent in and
as a part of the transaction of such business, and for his willful
omission to fulfill the obligations of the principal.
§
2339.
A principal is responsible for no other wrongs committed by
his agent than those mentioned in the last section, unless he has
authorized or ratified them, even though they are committed while the
agent is engaged in his service.
Article 4
§
2342.
One who assumes to act as an agent thereby warrants, to all
who deal with him in that capacity, that he has the authority which
he assumes.
§
2343.
One who assumes to act as an agent is responsible to third
persons as a principal for his acts in the course of his agency, in
any of the following cases, and in no others:
- When, with his consent, credit is given to him personally in a
transaction;
- When he enters into a written contract in the name of his
principal, without believing, in good faith, that he has authority to
do so; or,
- When his acts are wrongful in their nature.
§
2344.
If an agent receives anything for the benefit of his
principal, to the possession of which another person is entitled, he
must, on demand, surrender it to such person, or so much of it as he
has under his control at the time of demand, on being indemnified for
any advance which he has made to his principal, in good faith, on
account of the same; and is responsible therefor, if, after notice
from the owner, he delivers it to his principal.
§
2345.
The provisions of this Article are subject to the provisions
of Part I, Division First, of this Code.
Article 5
§
2349.
An agent, unless specially forbidden by his principal to do
so, can delegate his powers to another person in any of the following
cases, and in no others:
- When the act to be done is purely mechanical;
- When it is such as the agent cannot himself, and the sub-agent
can lawfully perform;
- When it is the usage of the place to delegate such powers; or,
- When such delegation is specially authorized by the principal.
§
2350.
If an agent employs a sub-agent without authority, the former
is a principal and the latter his agent, and the principal of the
former has no connection with the latter.
§
2351.
A sub-agent, lawfully appointed, represents the principal in
like manner with the original agent; and the original agent is not
responsible to third persons for the acts of the sub-agent.
Article 6
§
2355.
An agency is terminated, as to every person having notice
thereof, by any of the following:
- The expiration of its term.
- The extinction of its subject.
- The death of the agent.
- The agent's renunciation of the agency.
- The incapacity of the agent to act as such.
§
2356.
- Unless the power of an agent is coupled with an interest
in the subject of the agency, it is terminated by any of the
following:
- Its revocation by the principal.
- The death of the principal.
- The incapacity of the principal to contract.
- Notwithstanding subdivision (a), any bona fide transaction
entered into with an agent by any person acting without actual
knowledge of the revocation, death, or incapacity shall be binding
upon the principal, his or her heirs, devisees, legatees, and other
successors in interest.
- Nothing in this section shall affect the provisions of Section 1216.
- With respect to a proxy given by a person to another person
relating to the exercise of voting rights, to the extent the
provisions of this section conflict with or contravene any other
provisions of the statutes of California pertaining to the proxy, the
latter provisions shall prevail.
§
2357.
For the purposes of subdivision (b) of Section 2356, in the
case of a principal who is an absentee as defined in Section 1403 of
the Probate Code, a person shall be deemed to be without actual
knowledge of:
- The principal's death or incapacity while the absentee
continues in missing status and until the person receives notice of
the determination of the death of the absentee by the secretary
concerned or the head of the department or agency concerned or the
delegate of the secretary or head.
- Revocation by the principal during the period described in
subdivision (a).
