Tyler v. Sanborn

Citations

• 128 Ill. 136
• 4 L.R.A. 218

Syllabus

<p>1. Agency—agent dealing in the subject matter of his agency. Axe agent appointed to sell property can not, either directly or indirectly, have an interest in the sale of the property of his principal which is within the scope of his agency, without the consent of his principal freely given, after full knowledge of every matter known to the agent which might affect the interests of the principal.</p> <p>2. It is of no consequence in such a case that no fraud was actually intended, or that no advantage was, in fact, derived from the transaction, by the agent. The rule is not merely remedial of wrong actually committed, but is intended to be preventive of wrong.</p> <p>3. An agent may undoubtedly buy of his principal and have an interest in the sale of property belonging to his principal, but in such case the burden is upon the agent to show that the principal had knowledge, not only of the fact that the agent was buying or interested, but also of every material fact known to the agent which might affect the principal, and that having such knowledge, he freely consented to the transaction. This rule is equally applicable to eases where the agent is empowered to sell at a stated price, as when his authority is to sell generally.</p> <p>4. An agent was appointed by non-resident owners of real estate to-look after the same and collect rents, and procure offers of purchase, to be submitted to his principals. He reported an offer of $1000 by B. for the property. The offer was accepted and a deed sent to the agent-for delivery on payment of that sum. B. declined finally to make the purchase, when the wife of the agent agreed to take the property at the price named, and B. made her a deed, and she paid the price to-her husband, and the two deeds were recorded, placing the legal title in the wife. This was done without the knowledge of the principals,, and no fraud in fact was intended: Held, that the transaction amounted to a sale by the agent to his wife, and was fraudule