26. Equitable agency.

26.     Equitable agency.

The circumstances in which a creditor is answerable for inequitable conduct on the part of a debtor are not limited to those when the debtor is the creditor's agent in the common law sense1. The creditor can be visited with the consequences of the debtor's conduct even where the debtor was neither actually nor ostensibly authorised to act as he did, thus giving rise to what may be termed an 'equitable agency'2.