Page 60 - 01. Indian Contract Act, 1872

(f) Sec. 225: Right to be compensated for any injury caused due to principal's
negligence.

Principle's liability for agent's act to Third Parties
There are 3 circumstances in which an agent may contract namely -
(i) The agent acts for named principal (disclosed principal)
(ii) The agent acts for an undisclosed principal
(iii) The agent acts for a concealed principal
a) Sec. 226: Acts within the scope of actual apparent authority., it bounds the
principal.
b) Sec. 227: Acts in excess of agent's authority is separable, it bounds the principal.
c) Sec. 228: Acts in excess of agent's authority is not separable, principal is not bound by
it.

d) Sec.238 : Principal is bound for any fraud or misrepresentation committed by
agent:
i.During the business hours
ii.Within his authority
e) Unnamed principal, principal becomes liable on being discovered.

Personal liability of the Agent
(a) It is also known as Doctrine of implied warranty of authority.
(b) It happens under following circumstances:
(1) where the agent signs the negotiable instrument without indicating that he is
signing for the Principal.
(2) where the contract expressly provides so.
(3) where the agent works for foreign principal.
(4) where the agent acts for a Principal who cannot be used.
(5) where a Government servant enters into a contract on behalf of Union of
India.
(6) where according to usage in trade in certain kinds of business agents are
personally liable.
(7) where the agency is coupled with interest
(8) If the agent is working for undisclosed principal .
(9) If the amount is received or paid by agent under mistake or coercion.

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