If a third person pays money to agent under mistake, and demand is made on the agent to return the money to the third person, the agent would be liable for the payment of the money, but if the agent pays over such money to his principal before he has notice to repay it to the third person, he is not personally liable for the money.1

Where the agent assumes to act as principal, he cannot free himself from liability for money received under mistake where he pays it over to his undisclosed principal.