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It is the duty of an agent to keep his principal's money and

property separate from his own or third parties, to keep accu-

rate accounts of all dealings with the same, to preserve and

produce upon demand all documents relating to the same, to

render an account of his transactions, and to deliver or pay

over to the principal, upon demand, all property, documents,

or money, belonging to the principal, and all profits resulting

therefrom,' including all profits which have accrued to the

1 Green v. Maitland, 4 Beav. 524; Betteley v. Reed, 4 Q. B. 511; Col-

lins V. Tillou, 26 Conn. 308.

•^ Biddle r. Bond, 6 B. & S. 225; Bliven v. Hudson River Rd. Co., 36

N. Y. 403, 406 ; Western Trans. Co. v. Barber, 56 N. Y. 514, 552.

8 Marvin i'. Ellwood, 11 Pai-^^e's Ch. (N. Y.) 365.

* Baldwin Bros. v. Potter, 4G Vt. 402; Kiewert v. Rindskopf, 40 Wis.

81; Snell v. Pells, 113 111. 145.

6 Nickolson v. Knowles, 5 Madd. 47; Roberts v. Ogilby, 9 Price, 269.

6 Posf, В§ 204.

' Gray v. Haig, 20 Beav. 219; Clarke i-. Tipping, 9 Beav. 284; Dads-

OBLIGATIONS OF AGENT. 113

agent as a result of his transactions,^ wliether such transac-

tions were within or without the scope of the authority ,2 and

whether legal or illegal.^

(1) Keeping property and money separate. If an agent

commingles the goods or money of his principal with his own,

so that the separate interests cannot be easily or accurately

distinguished, everything not clearly proved to be his own,

will be deemed to belong to the principal.'* If an agent

deposits his principal's money in a bank in his own name or to

his own account, he is the loser in case the bank fails."

Funds deposited in the principal's name, or taken by a bank

or other person with notice of the principal's interest, are in

the nature of trust funds, and may be followed by the princi-

pal until they pass into the hands of a purchaser for value

without notice.В®

(2) Keeping of accounts. If the nature of the undertaking

requires, it is the duty of an agent to keep reasonably full,

regular, and accurate accounts of liis business, including both

receipts and disbursements, and to preserve all vouchers and

other evidential papers which may be of value to his prin-

cipal.'^ If an agent fails to keep intelligible and accurate

accounts, everytliing will be presumed against him that is

consistent with the established facts of tiie case.^

(3) Rendering accounts. It is the duty of an agent to

render a full and accurate account to his principal of all trans-

well V. Jacobs, U Ch. Div. 278; Harsant v. Blaine, 56 L. J. Q. B. 511;

Jett V. Hempstead, 25 Ark. 462; Baldwin v. Potter, 46 Vt. 402.

1 Gardner v. Ogden, 22 N. Y. 327 ; Button v. Willner, 52 X. Y. 312 ;

LafEerty v. Jelly, 22 Tnd. 471.

2 Watson V. Union Iron Co., 15 Brad. (III.) .509.

3 Tenant v. Elliott, 1 B. & P. 3 ; Baldwin Bros. v. Potter, 46 Vt. 402.

* Gray v. Haig, 20 Beav. 219; Lupton v. White, 15 Ves. 432; Hart v.

Ten Eyck, 2 Johns. Ch. (N. Y.) 62.

5 Massey v. Banner, 1 Jac. & W. 241 ; Williams v. Williams, 55 Wis.

300; Naltner v. Dolan, 108 Ind. 500.

6 Post, В§ 178.

в– ^ Gray v. Haig, 20 Beav. 219 ; Clarke 0. Tipping, 9 Beav. 284 ; Dads-

well V. Jacobs, 34 Ch. Div. 278; Haas v. Damon, 9 Iowa, 589; Kerfoot

V. Hyman, 52 111. 512.

^ Gray v. Haig, supra.

8

114 ritlNCirAL AND AGENT.

actions cuiiiiccted with the agency, and, since the relation is

a fiduciary one, the principal has a right to compel the render-

ing of such an account in equity.* TJiis equitable remedy is

not based upon the complicated nature of the accounts (equit-

altlc assumpsit),^ but rests upon the fiduciary nature of the

relationship.^ Even in the case of accounts rendered and

accepted, the account may be reopened in equity on the

ground of fraud.^ An agent sued as a fiduciary is not, ordi-

narilv, permitted to jilcad tlie Statute of Limitations unless he

has in fact rendered an account, or demand has been made

iij)on him to do so.^

Although the right of set-off or counter-claim ordinarily

exists in favor of an agent, he will not be j)ermitted to enforce

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