161. When termination of agent’s authority takes effect as to agent and third persons

The termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

Illustrations

A directs B to sell goods for him, and agrees to give B 5 per cent commission on the price fetched by the goods. A afterwards, by letter, revokes B’s authority. B, after the letter is sent, but before he receives it, sells the goods for $100. The sale is binding on A and B is entitled to $5 as his commission.

A, at Brunei Darussalam, by letter directs B to sell for him some cotton lying in a warehouse in Klang and afterwards, by letter, revokes his authority to sell, and directs B to send the cotton to Brunei Darussalam. B, after receiving the second letter, enters into a

A directs B, his agent, to pay certain money to C. A dies and D takes out probate to his will. B, after A’s death, but before hearing of it, pays the money to C. The payment is good as against D the executor.