Indian Contract Act,1872

Act No : 9

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Section : Effect on agreement, of misrepresentation of fraud, by agent

238. Effect on agreement, of misrepresentation of fraud, by agent.-Misrepresentation made, or frauds committed, by agents actingin the course of their business for their principals, have the sameeffect on agreements made by such agents as if such misrepresentationsor frauds had been made or committed by the principals; butmisrepresentations made, or frauds committed, by agents, in matterswhich do not fall within their authority, do not affect theirprincipals. Illustrations(a) A, being B's agent for the sale of goods, induces C to buy them bya misrepresentation, which hhe was not authorized by B to make, Thecontract is voidable, as between B and C, at the option of C.(b) A, the captain of B's ship, signs bills of lading without havingreceived on board the goods mentioned therein. The bills of ladingare void as between B and the pretended cosignor.CHAPTER XI.-[Of Partnership.] Rep. by the Indian Partnership Act,1932 (9 of 1932), s. 73 and Schh. II.SCHEDULE.-[Enactments repealed.] Rep. by the Repealing and AmendingAct, 1914 (10 of 1914), s. 3 and Sch. II.

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