O.C.G.A. § 10-6-81 (2019)
Recovery for mistaken payment to principal
If money shall be paid to an agent by mistake and he in good faith shall pay it over to his principal, he shall not thereafter be personally liable therefor. In all other cases he shall be liable for its repayment. If money shall be paid by an agent by mistake, he may recover it in his own name.
History
Orig. Code 1863, § 2186; Code 1868, § 2182; Code 1873, § 2208; Code 1882,
§ 2208; Civil Code 1895, § 3036; Civil Code 1910, § 3608; Code 1933, § 4-403.
Annotations
JUDICIAL DECISIONS Remedy for mistaken payment reaching principal is action against principal. - If money is paid to an agent as the result of a mistake and the agent in turn pays the money in good faith to the agent’s principal, the correct remedy of the payor is an action against the principal and not the agent. John L. Burns, Inc. v. Gulf Oil Corp., 268 F. Supp. 222, 1967 U.S. Dist. LEXIS 11448 (N.D. Ga. 1967). Question in suit against agent is whether agent has possession of money. - In a suit against an agent to recover money voluntarily paid to the agent by mistake in fact, the controlling question in determining the agent’s individual liability to repay the money is whether the agent still has the money in the agent’s possession at the time of the suit or whether the agent had, before the suit was brought and before the agent had
any notice of the mistake, paid over to the agent’s principal the money received by mistake. Rogers v. Durrence, 10 Ga. App. 657, 73 S.E. 1083, 1912 Ga. App. LEXIS 636 (1912). Agent not liable if subagents have paid it to principal. - When there was testimony tending to show that the amount paid by a purchaser was paid in consequence of a mistake of fact, in that the plaintiff understood that the plaintiff was buying land, and it appears that the defendants acted in good faith, and the amount voluntarily paid to and received by their subagents or employees was in good faith paid over by the latter to the principal, before any notice of the alleged mistake was brought home to them, there was no personal liability on the part of the defendants. Pratt v. Foster, 18 Ga. App. 765, 90 S.E. 654, 1916 Ga. App. LEXIS 1253 (1916).
RESEARCH REFERENCES Am. Jur. 2d. 3 Am. Jur. 2d, Agency, §§ 302 et seq., 308 et seq. C.J.S. 2A C.J.S., Agency, § 358. ALR. Authority of agent to receive payment for commodities which he is authorized to sell, or for which he is to find market, 8 A.L.R. 203; 105 A.L.R. 718. Personal liability of servant or agent to third person for injuries caused by the performance or nonperformance of his duties to his employer, 20 A.L.R. 97; 99 A.L.R. 408; 96 A.L.R.2d 208. Right of a factor, commission merchant, or produce broker to sell property to protect advances, 40 A.L.R. 387.
Personal liability of agent in respect of funds received from third person and turned over to principal not entitled thereto, 82 A.L.R. 307. Good faith in receiving payment made under mistake of fact as affecting its recovery, 87 A.L.R. 649. Implied or ostensible authority to receive payments of principal of one who has authority to receive payments of interest, 111 A.L.R. 578. Authority of agent who delivers commercial paper or other obligation to third person for collection, to receive payment of proceeds from the latter, so as to preclude principal’s right to enforce payment of proceeds, 163 A.L.R. 1209.