Id. at §§ 34, 35, 36; Hartford Accident Indemnity Co. v. Cooper Park Development Corp., 169 F.2d 803, 807 (3d Cir. 1948); Prillaman v. Century Indemnity Co., 138 F.2d 821, 823 (4th Cir. 1943). Professional agents can properly assume that they have the authority usually exercised by others in the same field. 1 Restatement (Second) of Agency, supra at 334; Winslow v. Kaiser, 313 Pa. 577, 584, 170 A. 135, 138 (1934). So, too, a principal, say in Indiana, who does business through an advertising agency on Madison Avenue, can ordinarily expect his agency to do business in accordance with the usages in New York. See 1 Restatement (Second) of Agency, supra at § 36, comment d and illustrations 4 and 5; Winslow v. Kaiser, supra. As to authorization to contract, it may be inferred from authority to conduct a transaction if the making of the contract is incidental thereto, usually accompanies such a transaction or is reasonably necessary to accomplish it. 1 Restatement (Second) of Agency, supra at § 50.
Albert M. Greenfield was liable directly to the receivers as real owners. Belzer Company acted as agent for an undisclosed principal and in their relations with E. W. Clark Company dealt as principal and principal. An authorized agent who executes a contract for an undisclosed principal becomes a party thereto and stands in the place of his principal and is subject to the obligations of his principal: Restatement on Agency, section 322. This fundamental principle is applicable to purchases and sales made by brokers and a broker who contracts in his own name without disclosing the identity of his principal is personally liable. This is true even though the other contracting party is aware that the broker is an agent only. Meyer Law of Stock Brokers and Stock Exchanges, page 144, Winslow v. Kaiser, 313 Pa. 577. The additional defendant argues that his liability must arise from ownership.