Pacific Insurance Company v. Soule was a case heard by the United States Supreme Court in 1868. The case involved a dispute between Pacific Insurance Company and Soule, a former employee of the company. Soule had been hired by Pacific Insurance Company to act as an agent in the sale of insurance policies. After leaving the company, Soule continued to act as an agent for the company, selling policies without the company's knowledge or consent. The Supreme Court held that Soule was liable for the policies he sold without the company's knowledge or consent. The Court reasoned that Soule had a duty to act in the best interests of the company, and that by selling policies without the company's knowledge or consent, he had breached that duty. The Court also held that the company was entitled to recover the premiums paid on the policies sold by Soule. The Court's decision in Pacific Insurance Company v. Soule established that an agent has a duty to act in the best interests of the company, and that an agent who breaches that duty can be held liable for any losses suffered by the company. The decision also established that a company can recover premiums paid on policies sold without its knowledge or consent.

In Pacific Insurance Company v. Soule, the Supreme Court was tasked with determining whether a policy of insurance issued by an insurer in California to a resident of Oregon was valid and enforceable under the laws of both states. The majority opinion held that it was not, as the contract had been made without consideration for any law or regulation from either state. However, Justice Field dissented on this point and argued that there is no reason why contracts between citizens of different states should be invalidated simply because they were formed outside their respective jurisdictions. He further noted that such contracts are often necessary due to differences in local regulations and customs; thus, he concluded that if two parties enter into an agreement which does not violate either state's laws then it should be considered valid regardless of where it originated from or who entered into it.