One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction may set off against any claim of the principal arising out of the same all claims which he might have set off against the agent before notice of the agency.
Structure Code of Alabama
Title 8 - Commercial Law and Consumer Protection.
Section 8-2-1 - Authority of Agents Generally.
Section 8-2-2 - General Agent's Authority to Receive Price.
Section 8-2-3 - Special Agent's Authority to Receive Price.
Section 8-2-4 - Agent's Authority to Effect Purpose of Agency and Represent Authority.
Section 8-2-5 - Person Acting as Agent Warrants Authority He Assumes.
Section 8-2-6 - Principal Bound by Agent's Acts Under Ostensible Authority.
Section 8-2-7 - Principal Responsible for Negligence and Omission of Agent in Transacting Agency.
Section 8-2-8 - Both Principal and Agent Have Notice of Whatever Either Has Notice Of.