Saturday, March 31, 2012

Secret Limitations do not limit the authority of an admitted agent

Sophisticated defendants, especially insurers, often play hide and seek with agent's authority, writing secret limitations into agency agreements, manuals, or other instructions. 

Parshall v. Buetzer, 195 S.W.3d 515, 521 (Mo.App. 2006). 
"[S]ecret" limitations may mean those the principal intends "not to be revealed." RESTATEMENT (SECOND) OF AGENCY, Section 160 (1958).
 Wynn v. McMahon Ford Co., 414 S.W.2d 330, 337 (Mo.App.1967).
"This testimony brings the situation to the borderline for application of the elementary rule that a third person dealing with an admitted agent is not bound by secret limitations upon the power of the agent of which the third person had no notice.

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