133. Payments by principal.

(iii)     Settlement with Agent

133.     Payments by principal.

Where a principal is indebted to a third person on a contract made by his agent, he is not discharged from his liability to pay the debt by any payment to or settlement by him with the agent1, unless such payment or settlement takes place bona fide and at a time when the third person is unaware of the existence of the principal and is extending credit only to the agent2, or unless the third person by his conduct leads the principal reasonably to believe that