O.C.G.A. § 10-6-26 (2019)

Annotations

JUDICIAL DECISIONS Agent cannot dispute principal’s title. - One who undertakes to act as the agent of another cannot dispute the right or title of the agent’s principal in and to the subject of the agency. Morgan v. Morgan, 160 Ga. 472, 128 S.E. 674, 1925 Ga. LEXIS 188 (1925). Agent may not attack transfer to principal. - If there was an agreement between J and B that the latter should hold a certificate to secure a debt due B by J, and if J, for the purpose of securing such debt, delivered the certificate to B and the latter delivered the certificate to L for safekeeping, L could not defeat a recovery of the certificate by B on the ground that there was no written assignment of the certificate by J to B. Loveless v. Bridges, 136 Ga. 338, 71 S.E. 166, 1911 Ga. LEXIS 530 (1911). Denial of authority to sign principal’s name. - If a person signs the name of another to a note, purportedly as a joint obligor, one will be estopped to assert, in an action thereon by an innocent holder for value, that one did not have the authority to sign the name of such other party to the note. Williams v. Atlanta Nat’l Bank, 31 Ga. App. 212, 120 S.E. 658, 1923 Ga. App. LEXIS 856 (1923). Denial that agent holds money as county agent by showing money was borrowed without authority. - If the

authorities in charge of the finances of a county borrowed money for county purposes without authority of law, and the money thus unlawfully borrowed was received by the county treasurer as county funds and kept with the lawful money of the county, one was estopped from denying that one held this borrowed money by virtue of one’s office as treasurer, and was liable for the same upon one’s official bond. Mason v. Commissioners of Rds. & Revenues, 104 Ga. 35, 30 S.E. 513, 1898 Ga. LEXIS 278 (1898). Agent’s declarations are not admissible to disparage principal’s title. - Declarations of an agent, who is in possession of realty merely to manage and care for the realty, are not admissible in evidence against the principal to disparage the principal’s title. Sweeney v. Sweeney, 119 Ga. 76, 46 S.E. 76, 1903 Ga. LEXIS 39 (1903). Principal’s title may be defense to subagent. - While an agent cannot dispute one’s principal’s title except in certain instances, yet if one is in possession of cattle merely by virtue of an employment by an officer of the corporation, one would not because of these facts be estopped from defending upon the ground that the title was in the

company. Paschal v. Godley, 34 Ga. App. 321, 129 S.E. 565, 1925 Ga. App. LEXIS 250 (1925). Agent may restore note to principal despite another’s demand. - One in possession of a promissory note as agent for another is not cut off from restoring the note to one’s principal though a demand upon one for the note has been made by another claimant. Wando Phosphate Co. v. Parker, 93 Ga. 414, 21 S.E. 53, 1893 Ga. LEXIS 449 (1893). Dispute as to possession between principal and agent. - When dispute

arises as to right of agent or principal to possession of property in hands of agent, title to that property must, of necessity, be decided. Scroggins v. Powell, Goldstein, Frazer & Murphy (In re Kaleidoscope, Inc.), 15 B.R. 232, 1981 Bankr. LEXIS 2579 (Bankr. N.D. Ga. 1981), rev’d, 25 B.R. 729, 1982 U.S. Dist. LEXIS 16133 (N.D. Ga. 1982).

RESEARCH REFERENCES Am. Jur. 2d. 3 Am. Jur. 2d, Agency, §§ 14, 62, 139. C.J.S. 2A C.J.S., Agency, § 265. ALR. Liability of one who signs commercial

paper in blank to be used for his own benefit where it is wrongfully used by an agent or employee, 43 A.L.R. 198.