Serges is the owner of a retail meat marketing business. Without authority, his managing agent borrowed $3,500 from David, on Serges’s behalf for use in Serges’s business. Serges paid $200 on the alleged loan and on several other occasions told David that the full balance owed eventually would be paid. He then disclaimed liability on the debt, asserting that he had not authorized his agent to enter into the loan agreement.

Should David succeed in an action to collect on the loan?

Explain.