Summary

Portrait of Roger B. Taney Roger B. Taney Wilson v. Smith — Opinion of the Court

John, the agent of plaintiffs.
On this state of facts, did the necessary privity exist? or, in other words, had defendant the right to retain after notice of plaintiffs' claim?
It is objected that delegated power cannot be delegated without authority for that purpose, because it implies trust and confidence, which cannot be assigned to a stranger. That the sub-agent has no claim upon the principal, for commissions, advances, &c., therefore is under no responsibility to him, his sole remedy being against his immediate employer, and therefore that his sole responsibility is to him.
Source: Wikisource

Portrait of Roger B. Taney Roger B. Taney Wilson v. Smith — Opinion of the Court

We think the rule very clearly established, that whenever, by express agreement between the parties, a sub-agent is to be employed by the agent to receive money for the principal, or where an authority to do so may fairly be implied from the usual course of trade, or the nature of the transaction, the principal may treat the sub-agent as his agent, and when he has received the money, may recover it in an action for money had and received.
Source: Wikisource

Portrait of Roger B. Taney Roger B. Taney Wilson v. Smith — Opinion of the Court

Wherever defendant has received money, the property of plaintiffs, which defendant is bound ex aequo et bono to refund, it may be recovered in this action. Moses v. McFarlane, 2 Burr., 1012. The true question is the right of plaintiff to receive, or of defendant to retain the money.
In the eye of the law, there is always such privity of contract as is necessary to sustain this action, between a person who holds the money of another, which in equity and good conscience he is bound to refund, and the person whose money is thus withheld.
Source: Wikisource

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