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PRELIMINARY DRAFT 27 PT 2 1 (December 12, 1929)

handle is hein.ali/relagcy0032 and id is 1 raw text is: Section 516.
Comment a:
Illustrations:
1.   P appoints A as the general manager of P's
hotel directing A not to purchase food from a particular
merchant, T.   A nevertheless contracts in P's name for
suitable food with T, who at the time does not know of
the nature of A's position or the extent of his authority.
Since under the rule stated in Section 385, P is a party
to this contract, P can sue T.
2.   Same facts as in 1, except that T has been
notified by P that A is not authorized.   T is not liable
upon the contract which A purports to make with him by A
on account of P.
3.   P gives A a writing which properly interpteted
authorizes A to purchase 10,000 bushels of wheat on P's
account.   A goes to T who, looking at A's authorization
believes that it does not give A the power to bind P, but
nevertheless enters into the transaction in which P is
named as the contracting party, receiving a separate war-
ranty from A that the contract will be performed.  T is
liable to P upon this contract.
Comment c:
4.   P authorizes A and B to sell goods.  On Tuesday
A represents to T that the principal's goods are of a

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