Sloan v. Brown

Citations

• 228 Pa. 495
• 77 A. 821
• 1910 Pa. LEXIS 515

Syllabus

<p>Sales — Principal and agent — Limitations on authority — Shares of stock.</p> <p>1. Where a pledgee or purchaser takes stock with notice of the capacity in which an agent holds, he cannot deny the right of the principal therein.</p> <p>2. A purchaser of shares of stock from a known special agent is bound to ascertain the nature and extent of the agent’s authority, and is not entitled to rely upon the agent’s possession of a certificate, with an assignment and power of attorney to transfer, and a telegram from the principal containing the expression “if you can’t sell, borrow.” Wood’s App., 92 Pa. 379, distinguished.</p> <p>3. If in such a case the purchaser, with full knowledge of the ownership of the stock, pays ten cents a share for it, when inquiry would have shown him that the agent had been instructed to sell it to another party for fifty cents a share, equity will compel him to reassign the stock to the owner upon repayment of the amount paid to the agent with interest.</p>