78. Contracts made by agent.

In the absence of authority to do so, an agent must not purport to bind his principal by contract1. Where he possesses authority so to do, he must contract in his principal's name and not in his own, unless the terms of his employment permit it2. If he purchases property in his own name on behalf of his principal, and has the legal estate transferred to himself, he is a trustee for his principal in respect of the property

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