Story Case

Edward Howe, in Chicago, wrote a letter to Edward Snow, in Detroit, stating that he thereby appointed Snow his agent in the latter city to sell the Howe Automobile Pumps, at 15 per cent commission on all pumps sold, the agency to continue for one year. No correspondence had passed between the parties in the matter previous to this letter, and Snow did not reply to this letter prior to the receipt of another letter from Howe, stating that for reasons which he desired not to give, the offer made in his first letter was recalled. Snow had not made any effort to sell pumps up to this time, but nevertheless he brought suit on a contract which he alleged existed giving him authority to sell pumps. Can Snow recover?

Ruling Court Case. Scott Vs. Harvey, Volume 9 Illinois Appellate Court Reports, At Page 19

In this case it appears that Scott was the owner of a horse. He was moving from Illinois to Kansas, and, not being able to take the horse with him, he left it in care of Harvey until it could be disposed of. After moving to Kansas, Scott met one Hampton of Illinois and asked him if he would take the horse from Harvey and sell it, in case Scott should write him to do so. Hampton was perfectly willing to effect the sale.

Soon after his return to Illinois he received a letter from Scott directing him to sell the horse. In accordance with the direction, and without writing to Scott that he accepted, Hampton caused the horse to be sold at public auction. After paying Harvey the amount due him for the care of the horse during the time it was in his possession, the balance of the money was sent to Scott. For some reason Scott was not satisfied with the sale. He returned the money to Hampton, and sued Harvey, claiming that Harvey had no right to deliver the horse to a public auctioneer at the request of Hampton, since Hampton had not been given such authority.

Justice Higbee gave the opinion.

The Court held that Hampton was duly appointed agent, upon receipt of the letter. It was not necessary that he should have sent back his acceptance. When he assumed the responsibility of selling the horse, this was sufficient manifestation of his acceptance of the proposal made by Scott. Judgment was given for the defendant.

Ruling Law. Story Case Answer

So far as actual agency is concerned, mutual consent is necessary to the creation of the relation This means that the one who desires to have something done must choose some person to do it, and the person chosen must be willing to do the act, and do it for that particular person, and he must manifest that willingness. No notice need be given to the agent, however, to create the relation, but upon learning of his appointment, he may refuse to act, or, as is generally said, may disclaim the agency.

In the Story Case, no contract ever existed by which Howe was bound to permit Snow to act as his agent. Howe had merely made a proposal to Snow, and the latter had never manifested any intention to accept this proposal or offer. Snow cannot recover.