What is the test for liability under section 261 of the California Civil Code when a principal puts a servant or other agent in a position which enables the agent to commit a fraud upon third persons?

In applying the above provisions of the Civil Code, the courts of this state have adopted the principles expressed in sections 261 and 262 of the Restatement Second of Agency (Rutherford v. Rideout Bank, 11 Cal.2d 479, 482--483, 80 P.2d 978, 117 A.L.R. 383). Section 261 provides: 'A principal who puts a servant or other agent in a position which enables the agent, while apparently acting within his authority, to commit a fraud upon third persons is subject to liability to such

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