Manufacturers Casualty Insurance Company v. Martin-Lebreton Insurance Agency

The sole and simple issue in the district court was whether the principal, Manufacturers Casualty Insurance Company, as between itself and its local agent in New Orleans, ratified the act of the agent in writing a contract performance bond. There was no claim that the agent had original authority to write such a bond.

On January 12, 1951 the agent sent a night letter telegram to the principal advising that one Geiger was the successful bidder on “a small painting job for $2780,” giving a brief summary of Geiger’s experience, assets and liabilities and requesting authority to execute the bond.…