This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 510.— An account is opened in the name of John Adams, the cheques on which bear above his signature the name of a mining company. He is known to be an employee of the company, acting in the absence of the formally authorized agent. Would the company be liable for an overdraft in such an account caused by the payment of wages, and if not would Adams be personally liable?
Answer.—The question involved is one of agency, depending on the facts of the case and could not be answered without a full statement of the facts. We should suppose that the company would not be directly responsible, that the agent alone would be personally liable, but he might have a claim on the company for money expended on their behalf, and in that indirect way the company might be responsible to the bank