Indian Contract Act — Section 238

238. Effect, on agreement, of misrepresentation of fraud, by agent.—Misrepresentation made, or frauds committed, by agents acting in the course of their business for their principals, have the same effect on agreements made by such agents as if such misrepresentations or frauds had been made or committed by the principals; but misrepresentations made, or frauds committed, by agents, in matters which do not fall within their authority, do not affect their principals.

Illustrations

(a) A, being B’s agent for the sale of goods, induces C to buy them by a misrepresentation, which he was not authorized by

B to make. The contract 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 having received on board the goods mentioned therein. The bills

of lading are void as between B and the pretended cosignor.

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This Bare Act is a government source available in the public domain. It is being used strictly for educational purposes only.

CHAPTER XI.—[OF PARTNERSHIP.]Rep. by the Indian Partnership Act, 1932 (9 of 1932), s. 73

and the Second Schedule.