for less than the amount the principal stipulated, or if he buys on his principal’s behalf at a price higher than the current market value or higher than what the principal fixed, the transaction is valid but the agent must cover the shortfall or the excess. If, on the other hand, he sells for more than the stipulated price, or the principal says, “Sell it for such-and-such on credit,” and the agent sells it for the same amount in cash, or, “Buy it for such-and-such in cash,” and the agent buys it on credit, then so long as no harm results, the transaction stands; otherwise it does not.
Section
If the agent knowingly purchases something that is defective, the purchase is binding on him unless the principal consents; if he was unaware of the defect, he may return the item. The selling agent must deliver the goods and is not to collect the price without clear authorization, whereas the purchasing agent1 must hand over the price; should he delay without excuse and it be lost, he is liable for it.
If a person is appointed to conclude an invalid sale but conducts it in a valid manner, or if the mandate is worded in utterly general terms—“in every small and great matter,” “buy whatever you wish,” or “buy that item for whatever price you wish,” with no specification—the agency is invalid.
An agent appointed solely for litigation may not receive payment, and the converse is likewise true. The instruction “Collect my right from Zayd” does not extend to Zayd’s heirs unless the principal also says, “and from whoever succeeds him.” A depositary-agent is not liable if he did not summon witnesses.
Section
The agent is a trustee; he is not liable for what perishes in his custody without negligence. His statement, supported by an oath, is accepted concerning both non-receipt and destruction.
If someone claims to be Zayd’s agent authorized to collect his due from Amr, Amr is neither obliged to pay him even if he believes him, nor required to swear an oath if he thinks him untruthful. But if Amr does pay him and Zayd later denies the agency, Zayd shall swear and Amr must make restitution.