Herring Farrell v. . Hottendorf Hashagan

Settle, J. The question for determination is this: Did Spiro, the agent of the plaintiffs, have authority to relean the debt duo from the defendants to the plaintiffs ? The only evidence bearing upon this question is that of Rashagan, one of the defendants, who testifies that Spiro, through whom he purchased the safe, was frequently in Wilmington, acting as the agent of the plaintiffs, sell hug safes, exchanging safes, and collecting notes for thepiah i tiffs. That sometime in August, 1873, Spiro asked the witness for the note that had been sent by the plaintiffs to be signed, and on receiving the note tore it to pieces, and stated, that as the safe had been lost on the steamer Francis Wright, ho would release them from all liability on account of the safe, and that he would send them another in the place of it, and that defendants have never received any safe. Does this testimony furnish any evidence that Spiro had authority to release the debt due from the defendants ? Authority to collect, does not, by any means, imply an authority ty release a debt. Parsons, in his work on contracts, says, “ one known to be an agent to settle claims, and with specific authority to this effect, cannot be supposed to have authority to commute them.” And it is said in Story on Agency §99, “An agent employed to receive payment, is not, unless some special authority beyond the ordinary reach is given to him, clothed with authority to commute the debt for another thing; or to release it upon a composition ; or to pledge a note required for the debt, or the money when received; or to submit the debt or demand to arbitration ; unless, indeed, the particular employment of *591 the agent, or the general usage of the business, or the habits of dealing between the parties should raise a presumption the other way.” In the case before us there is nothing to raise a presumption contrary to the general rule. The agent, very generously attempted to release the debt due his principal without any consideration whatsoever, and actually promised to send another safe. Our conclusion is that his Honor slnull have pharged the jury that there was no evidence of such an agency as would authorize Spiro to release the debt. Let the judgment prayed for in the complaint, be entered here, in accordance with the case agreed. Fee Cuexam. Judgment accordingly.