Agency - duties and liabilities of principal - liability in contract -
principal liable to repay money borrowed without authority by agent
but applied in discharging principal's legal liabilities: If an agent borrows
money without the authority of his principal but in fact applies the
money in discharging the legal liabilities of the principal, the lender is
entitled in equity to stand in the same position regarding the money so
applied as if it was originally borrowed from him by the principal, and
may therefore sue the latter for its repayment.