What is the legal status regarding the discharge of liability if payment is made to the purported agent, and the actual principal subsequently appears?
General Chapter
Al-Mughni
Book of Agency
Primary text
If the payment is made to the claimant (with or without the holder's prior affirmation), and the principal later appears and affirms the agency, the original payer is absolved of liability. If the principal denies the agency, the principal's word is taken if they swear an oath. If the denied agent possesses the physical item, the principal may reclaim it or sue whomever they wish, as the payer delivered it to a non-entitled person, and the agent has the principal's property in hand. If the payer is sued, the payer may then reclaim the item from the agent to deliver it to its rightful owner.
Supporting text
If the physical item is destroyed or cannot be returned, the owner may seek compensation from either the payer or the recipient, as the payer is liable for the delivery and the recipient received what was not rightfully theirs. If one party guarantees compensation, they may not seek recourse from the other, unless the payer delivered the item to the agent without confirmation of the agency and without evidence, in which case the payer may seek recourse from the agent. If the agent guarantees compensation, recourse is not available against them. If the principal affirmed the agency but the agent subsequently caused damage or negligence, the liability rests solely on the agent, and if the agent compensates, they bear the loss. However, if the payer compensates, recourse is against the agent because, despite the initial affirmation of proper receipt, liability arose from the agent's negligence.