What is the Effect, on agreement, of misrepresentation or fraud by agent? Section 238 of Indian Contract Act 1872
238. Misrepresentations 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 consignor.
Section 226 - Enforcement and consequences of agent's contracts
Section 227 - Principal how for bound, when agent exceeds authority
Section 228 - Principal not bound when excess of agent's authority is not separable
Section 229 - Consequences of notice given to agent
Section 230 - Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
Section 231 - Rights of parties to a contract made by agent not disclosed
Section 232 - Performance of contract with agent supposed to be principal
Section 233 - Right of person dealing with agent personally liable
Section 235 - Liability of pretended agent
Section 236 - Person falsely contracting as agent not entitled to performance
Section 237 - Liability of principal inducing belief that agent's unauthorized acts were authorized
Section 238 - Effect, on agreement, of misrepresentation or fraud by agent