Serges is the owner of a retail marketing business. His managing agent borrowed $3,500 from David on Serges’s behalf, for use in Serges’s business. Serges pain $200 on the alleged loan and on several other occasions told David that the full balance owed would eventually be paid. He then disclaimed liability on the debt, asserting that he had not authorized his agent to enter into a loan agreement, David brought this action to collect on the loan. Decision?