The third party is not discharged from his liability to the principal by any payment to or settlement with the agent1, unless such payment or settlement is ratified by the principal or is made in the ordinary course of business, or in accordance with the agent's authority2, express, implied or apparent3. If, however, the principal has allowed the agent to appear as principal in the transaction in respect of which the payment or settlement is made, the third person is discharged by any payment to or settlement with the agent which would have discharged him if the agent had
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