N.D. Cent. Code § 3-03-02 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-02
3-03-02. Principal bound when agent exceeds authority
Status: in_force

3-03-02. Principal bound when agent exceeds authority

When an agent exceeds the agent's authority, the agent's principal is bound by the agent's

authorized acts so far only as they can be plainly separated from those which are unauthorized.
N.D. Cent. Code § 3-02-01 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-01
3-02-01. Acts done by or to agent
Status: in_force

3-02-01. Acts done by or to agent

Every act which legally may be done by or to any person may be done by or to the agent of

such person for that purpose, unless a contrary intention clearly appears.
N.D. Cent. Code § 3-02-02 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-02
3-02-02. Actual or ostensible authority
Status: in_force

3-02-02. Actual or ostensible authority

An agent has such authority as the principal actually or ostensibly confers upon the agent.

Actual authority is such as a principal intentionally confers upon the agent or intentionally or by

want of ordinary care allows the agent to believe the agent possesses. Ostensible authority is

such as the principal intentionally or by want of ordinary care causes or allows a third person to

believe the agent possesses.
N.D. Cent. Code § 3-06-06 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-06
3-06-06. Relieved of liability by consent only
Status: in_force

3-06-06. Relieved of liability by consent only

A factor who receives property for sale under a general agreement or usage to guarantee

the sale or the remittance of the proceeds cannot obtain relief from responsibility therefor

without the consent of the factor's principal.
N.D. Cent. Code § 3-02-14 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-14
3-02-14. Lawful subagent principal's agent
Status: in_force

3-02-14. Lawful subagent principal's agent

A subagent lawfully appointed represents the principal in like manner with the original agent,

and the original agent is not responsible to third persons for the acts of the subagent.
N.D. Cent. Code § 3-03-05 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-05
3-03-05. Notice to principal or agent
Status: in_force

3-03-05. Notice to principal or agent

As against a principal, both principal and agent are deemed to have notice of whatever

either has notice and ought, in good faith and the exercise of ordinary care and diligence, to

communicate to the other.
N.D. Cent. Code § 3-02-03 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-03
3-02-03. Agent authority
Status: in_force

3-02-03. Agent authority

Every agent has actually such authority as is defined by this title unless specially deprived

thereof by the agent's principal, and has even then such authority ostensibly, except as to

persons who have actual or constructive notice of the restriction upon the agent's authority.
N.D. Cent. Code § 3-02-11 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-11
3-02-11. Authority of general and special agent to receive price
Status: in_force

3-02-11. Authority of general and special agent to receive price

A general agent to sell, who is entrusted by the principal with the possession of the thing

sold, has authority to receive the price. A special agent to sell has authority to receive the price

on delivery of the thing sold, but not afterwards.
N.D. Cent. Code § 3-04-01 — ND Code / Title 3 / Chapter 3-04 / Section 3-04-01
3-04-01. Agent warrants authority
Status: in_force

3-04-01. Agent warrants authority

One who assumes to act as an agent thereby warrants to all who deal with that person in

that capacity that the person has the authority which the person assumes.
N.D. Cent. Code § 3-02-15 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-15
3-02-15. Responsibility of mere agent or unauthorized subagent
Status: in_force

3-02-15. Responsibility of mere agent or unauthorized subagent

A mere agent of an agent is not responsible as such to the principal of the latter. If an agent

employs a subagent without authority, the former is a principal and the latter is the former's

agent and the principal of the former has no connection with the latter.
N.D. Cent. Code § 3-02-04 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-04
3-02-04. Authority limited to specific terms
Status: in_force

3-02-04. Authority limited to specific terms

When an authority is given partly in general and partly in specific terms, the general

authority gives no higher powers than those specifically mentioned.
N.D. Cent. Code § 3-02-16 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-16
3-02-16. Duty of agent as collector of negotiable instrument
Status: in_force

3-02-16. Duty of agent as collector of negotiable instrument

An agent employed to collect a negotiable instrument must collect it promptly and take all

measures necessary to charge the parties thereto in case of its dishonor, and, if it is a bill of

exchange, must present it for acceptance with reasonable diligence.
N.D. Cent. Code § 3-06-05 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-05
3-06-05. Liability under guaranty commission
Status: in_force

3-06-05. Liability under guaranty commission

A factor who charges the factor's principal with a guaranty commission upon a sale thereby

assumes absolutely to pay the price when it falls due as if it were a debt of the factor's own and

not as a mere guarantor for the purchaser, but the factor does not thereby assume any

additional responsibility for the safety of the factor's remittance of the proceeds.
N.D. Cent. Code § 3-02-12 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-12
3-02-12. Agent must inform principal - Not exceed authority
Status: in_force

3-02-12. Agent must inform principal - Not exceed authority

An agent must use ordinary diligence to keep the agent's principal informed of the agent's

acts in the course of the agency. An agent must not exceed the limits of the agent's actual

authority as defined by this title.
N.D. Cent. Code § 3-02-13 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-13
3-02-13. When agent can delegate powers
Status: in_force

3-02-13. When agent can delegate powers

An agent, unless specially forbidden by the agent's principal to do so, can delegate the

agent's powers to another person in any of the following cases, and in no others:

1. When the act to be done is purely mechanical.

2. When it is such as the agent personally cannot, and the subagent lawfully can,

perform.

3. When it is the usage of the place to delegate such power.

4. When such delegation is specially authorized by the principal.
N.D. Cent. Code § 3-06-01 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-01
3-06-01. Definition
Status: in_force

3-06-01. Definition

A factor is an agent who, in the pursuit of an independent calling, is employed by another to

buy or sell property in the factor's own name and is entrusted by the principal with the

possession or control of the property or authorized to receive payment therefor from the

purchaser.
N.D. Cent. Code § 3-03-03 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-03
3-03-03. When ostensible authority binding
Status: in_force

3-03-03. When ostensible authority binding

A principal is bound by acts of the principal's agent under a merely ostensible authority to

those persons only who in good faith and without ordinary negligence have incurred a liability or

parted with value upon the faith thereof.
N.D. Cent. Code § 3-02-10 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-10
3-02-10. Authority to warrant property sold
Status: in_force

3-02-10. Authority to warrant property sold

Authority to sell and convey real property includes authority to give the usual covenants of

warranty. Authority to sell personal property includes authority to warrant the title of the principal

and the quality and quantity of the property.
N.D. Cent. Code § 3-02-06 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-06
3-02-06. Form of authorization
Status: in_force

3-02-06. Form of authorization

An oral authorization is sufficient for any purpose, except that an authority to enter into a

contract required by law to be in writing, other than an instrument covered by chapter 41-03 can

be given only by an instrument in writing.
N.D. Cent. Code § 3-01-08 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-08
3-01-08. Ratification of agency - How made - Extent
Status: in_force

3-01-08. Ratification of agency - How made - Extent

A ratification can be made only in the manner that would have been necessary to confer an

original authority for the act ratified or, when an oral authorization would suffice, by accepting or

retaining the benefit of the act with notice thereof. A ratification is not valid unless at the time of

ratifying the act done the principal has power to confer authority for such an act and ratification

of part of an indivisible transaction is a ratification of the whole.
N.D. Cent. Code § 3-05-01 — ND Code / Title 3 / Chapter 3-05 / Section 3-05-01
3-05-01. Authority from seller
Status: in_force

3-05-01. Authority from seller

An auctioneer, in the absence of special authorization or usage to the contrary, has authority

from the seller only as follows:

1. To sell by public auction to the highest bidder.

2. To sell for cash only, except such articles as usually are sold on credit at auction.

3. To warrant the title, quality, and quantity of personal property sold by the auctioneer.

4. To prescribe reasonable rules and terms of sale.

5. To deliver the thing sold upon payment of the price to the clerk of the auction.

6. To do whatever else is necessary or proper and usual in the ordinary course of

business for effecting these purposes.
N.D. Cent. Code § 3-02-05 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-05
3-02-05. General authority limited
Status: in_force

3-02-05. General authority limited

An authority expressed in general terms, however broad, does not authorize an agent to act

in the agent's own name unless doing so is the usual course of business, to define the scope of

the agent's agency, or to do any act that a trustee is forbidden to do under chapters 59-09,

59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, and 59-19.
N.D. Cent. Code § 3-01-01 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-01
3-01-01. Definition
Status: in_force

3-01-01. Definition

Agency is the relationship which results when one person, called the principal, authorizes

another, called the agent, to act for the principal in dealing with third persons.
N.D. Cent. Code § 3-01-05 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-05
3-01-05. Authorization to agent
Status: in_force

3-01-05. Authorization to agent

An agent may be authorized to do any acts which the agent's principal might do, except

those to which the principal is bound to give personal attention.
N.D. Cent. Code § 3-01-10 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-10
3-01-10. Rescission of ratification
Status: in_force

3-01-10. Rescission of ratification

A ratification may be rescinded when made without such consent as is required in a contract

or with an imperfect knowledge of the material facts of the transaction ratified, but not otherwise.
N.D. Cent. Code § 3-02-17 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-17
3-02-17. Limitation of duties of licensed real estate agents
Status: in_force

3-02-17. Limitation of duties of licensed real estate agents

The duties of real estate brokers and real estate salespersons, who are licensed under

chapter 43-23, and the civil liabilities arising from the duties, are limited to those duties set forth

in chapter 43-23 or under rules adopted under that chapter.
N.D. Cent. Code § 3-01-02 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-02
3-01-02. General and special agent defined
Status: in_force

3-01-02. General and special agent defined

An agent for a particular act or transaction is called a special agent. All others are general

agents.
N.D. Cent. Code § 3-03-01 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-01
3-03-01. Rights and liabilities accruing to principal
Status: in_force

3-03-01. Rights and liabilities accruing to principal

An agent represents the agent's principal for all purposes within the scope of the agent's

actual or ostensible authority, and all the rights and liabilities which would accrue to the agent

from the transactions within such limit, if they had been entered into on the agent's own

account, accrue to the principal.
N.D. Cent. Code § 3-06-02 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-02
3-06-02. Authority of factors
Status: in_force

3-06-02. Authority of factors

In addition to the authority of agents in general, a factor has actual authority from the

factor's principal unless specially restricted:

1. To insure property consigned to the factor uninsured.

2. To sell property consigned to the factor on such credit as is usual, except such things

as it is contrary to usage to sell on credit, but having once agreed with the purchaser

upon the terms of credit, a factor may not extend it, nor may the factor pledge,

mortgage, or barter the property so consigned.

3. To delegate the factor's authority to the factor's partner or servant, but not to any

person in an independent employment.
N.D. Cent. Code § 3-03-06 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-06
3-03-06. Incomplete execution of authority
Status: in_force

3-03-06. Incomplete execution of authority

A principal is bound by an incomplete execution of an authority when it is consistent with the

whole purpose and scope thereof, but not otherwise.
N.D. Cent. Code § 3-01-11 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-11
3-01-11. Termination of agency
Status: in_force

3-01-11. Termination of agency

1. An agency is terminated as to every person having notice thereof by:

a. Expiration of its term;

b. Extinction of its subject;

c. Death of the agent;

d. Renunciation by the agent; or

e. Incapacity of the agent to act as such.

2. Unless the power of an agent is coupled with an interest in the subject of the agency, it

is terminated as to every person having notice thereof by:

a. Its revocation by the principal;

b. Death of the principal; or

c. Incapacity of the principal to contract.
N.D. Cent. Code § 3-03-09 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-09
3-03-09. Negligence of agent
Status: in_force

3-03-09. Negligence of agent

Unless required by or under the authority of law to employ that particular agent, a principal

is responsible to third persons for the negligence of the principal's agent in the transaction of the

business of the agency, including wrongful acts committed by the agent in and as a part of the

transaction of the business, and for the agent's willful omission to fulfill the obligations of the

principal. The principal is not responsible for:

1. Other wrongs committed by the principal's agent unless the principal has authorized or

ratified them, even though they are committed while the agent is engaged in the

principal's service.

2. Injuries or death to passengers and other persons or damage to properties resulting

from:

a. Operation or use of a motor vehicle, not owned, leased, or contracted for by the

principal in a ridesharing arrangement, as defined in section 8-02-07.

b. Information, incentives, or other encouragement to agents to participate in a

ridesharing arrangement, as defined in section 8-02-07.
N.D. Cent. Code § 3-01-09 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-09
3-01-09. Retroactive ratification limited
Status: in_force

3-01-09. Retroactive ratification limited

No unauthorized act can be made valid retroactively to the prejudice of third persons

without their consent.
N.D. Cent. Code § 3-01-04 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-04
3-01-04. Who may appoint an agent - Who may be agent
Status: in_force

3-01-04. Who may appoint an agent - Who may be agent

Any person having capacity to contract may appoint an agent and any person may be an

agent.
N.D. Cent. Code § 3-03-08 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-08
3-03-08. Setoff against agent
Status: in_force

3-03-08. Setoff against agent

One who deals with an agent without knowing or having reason to believe that the agent

acts as such in the transaction may set off against any claim of the principal arising out of the

same all claims which the person dealing with the agent might have set off against the agent

before notice of the agency.
N.D. Cent. Code § 3-05-02 — ND Code / Title 3 / Chapter 3-05 / Section 3-05-02
3-05-02. Authority to bind both parties
Status: in_force

3-05-02. Authority to bind both parties

An auctioneer has authority from a bidder at the auction as well as from the seller to bind

both by a memorandum of the contract whenever a written memorandum is required by any

statute or by usage to make a valid contract of sale, and such memorandum must be in the form

and content prescribed.
N.D. Cent. Code § 3-03-04 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-04
3-03-04. Instrument within scope of authority binding
Status: in_force

3-03-04. Instrument within scope of authority binding

Any instrument within the scope of the agent's authority by which an agent intends to bind

the agent's principal does bind the principal if such intent is plainly inferable from the instrument

itself.
N.D. Cent. Code § 3-02-09 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-09
3-02-09. When agent may disobey instructions
Status: in_force

3-02-09. When agent may disobey instructions

An agent has power to disobey instructions in dealing with the subject of the agency in

cases when it is clearly for the interest of the agent's principal that the agent should do so and

there is not time to communicate with the principal.
N.D. Cent. Code § 3-06-04 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-04
3-06-04. Must obey instructions - Exception
Status: in_force

3-06-04. Must obey instructions - Exception

A factor must obey instructions of the factor's principal to the same extent as any other

employee, notwithstanding any advances the factor may have made to the principal upon the

property consigned to the factor, except that if the principal forbids the factor to sell at the

market price, the factor nevertheless may sell for the factor's reimbursement after giving to the

factor's principal reasonable notice of the factor's intention to do so and of the time and place of

sale, and proceeding in all respects as a pledgee.
N.D. Cent. Code § 3-01-07 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-07
3-01-07. No consideration necessary
Status: in_force

3-01-07. No consideration necessary

The relationship of principal and agent can be created although neither party receives

consideration.
N.D. Cent. Code § 3-04-03 — ND Code / Title 3 / Chapter 3-04 / Section 3-04-03
3-04-03. Surrender of property adversely claimed
Status: in_force

3-04-03. Surrender of property adversely claimed

If an agent receives anything for the benefit of the agent's principal, to the possession of

which another person is entitled, the agent on demand must surrender it, or so much of it as the

agent has under the agent's control at the time of the demand, to such other person, on being

indemnified for any advance which the agent has made to the agent's principal in good faith on

account of the same. The agent is responsible therefor, if the agent delivers it to the agent's

principal after notice from the owner.
N.D. Cent. Code § 3-06-03 — ND Code / Title 3 / Chapter 3-06 / Section 3-06-03
3-06-03. Ostensible authority of factor
Status: in_force

3-06-03. Ostensible authority of factor

A factor has ostensible authority to deal with the property of the factor's principal as the

factor's own in transactions with persons not having notice of the actual ownership.
N.D. Cent. Code § 3-02-08 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-08
3-02-08. Authority to do necessary acts and make representations
Status: in_force

3-02-08. Authority to do necessary acts and make representations

An agent has authority:

1. To do everything necessary or proper and usual in the ordinary course of business to

effect the purpose of the agent's agency.

2. To make a representation respecting any matter of fact, not including the terms of the

agent's authority, but upon which the agent's right to use the agent's authority depends

and the truth of which cannot be determined by the use of reasonable diligence on the

part of the person to whom the representation is made.
N.D. Cent. Code § 3-03-07 — ND Code / Title 3 / Chapter 3-03 / Section 3-03-07
3-03-07. Credit to agent - Principal exonerated
Status: in_force

3-03-07. Credit to agent - Principal exonerated

If exclusive credit is given to an agent by the person dealing with the agent, the agent's

principal is exonerated by payment or other satisfaction made by the principal to the agent in

good faith before receiving notice of the creditor's election to hold the principal responsible.
N.D. Cent. Code § 3-04-02 — ND Code / Title 3 / Chapter 3-04 / Section 3-04-02
3-04-02. When agent liable as principal
Status: in_force

3-04-02. When agent liable as principal

One who assumes to act as an agent is responsible to third persons as a principal for that

person's acts in the course of that person's agency in any of the following cases, and in no

others:

1. When, with that person's consent, credit is given to that person personally in a

transaction.

2. When that person enters into a written contract in the name of that person's principal

without a good-faith belief in having the authority to do so.

3. When that person's acts are wrongful in their nature.
N.D. Cent. Code § 3-01-03 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-03
3-01-03. Actual and ostensible agency defined
Status: in_force

3-01-03. Actual and ostensible agency defined

An agency is either actual or ostensible. It is actual when the agent really is employed by

the principal. It is ostensible when the principal intentionally or by want of ordinary care causes

a third person to believe another to be the principal's agent, who really is not employed by the

principal.
N.D. Cent. Code § 3-02-07 — ND Code / Title 3 / Chapter 3-02 / Section 3-02-07
3-02-07. Fraud limits authority
Status: in_force

3-02-07. Fraud limits authority

An agent never can have authority, either actual or ostensible, to do an act which is, and is

known or suspected by the person with whom the agent deals to be, a fraud upon the principal.
N.D. Cent. Code § 3-01-06 — ND Code / Title 3 / Chapter 3-01 / Section 3-01-06
3-01-06. How agency created
Status: in_force

3-01-06. How agency created

An agency may be created and an authority may be conferred by a prior authorization or a

subsequent ratification.