When one of two innocent persons must suffer by the act of a third person, he who put it in the power of the third person to inflict the injury shall bear the loss.
(Civil Code 1895, § 3940; Civil Code 1910, § 4537; Code 1933, § 37-113.)
RESEARCH REFERENCES
Am. Jur. 2d.
- 27 Am. Jur. 2d, Equity, §§ 146, 147.
ALR.
- Propriety of suit in equity by or against several insurers under fire policies covering same risk, 98 A.L.R. 181.
Who must bear loss as between drawer induced by fraud of employee or agent to issue check payable to nonexisting person or a person having no interest in the proceeds thereof, and one who cashes or pays it on the forged endorsement by such employee or agent of the name of such ostensible payee, 99 A.L.R. 439.
Relative rights as between purchaser of chattel from one who had previously bought it with stolen money, and victim of the theft, 62 A.L.R.2d 537.
Right to reformation of contract or instrument as affected by intervening rights of third persons, 79 A.L.R.2d 1180.