Explain how an agent may, in certain circumstances, become liable to a third party for not having kept in touch with the principal. Create one unique fact situation in which you illustrate your answer.

You are the holder of a bill of exchange drawn by Richter (drawer) on Ward (drawee) payable to MacDonald (payee) or order, accepted by Ward and endorsed in blank by MacDonald. Upon presentment by you (holder for value in due course, textbook p. 643) to Ward for payment, payment is refused. Explain your legal position. What steps should you take to protect/assert your legal rights?