Section 238. Effect, on agreement, of misrepresentation or fraud by agent

Category of Bare Act Name of the Act Year of Promulgation
Civil Laws Indian Contract Act, 1872 1872
Act Number Enactment Date Chapter Number
9 1872-04-25 10
Chapter Title Ministry Department
Agency, Appointment and Authority of Agents Ministry of Law and Justice, Legislative Department Department of Law and Legislative Affairs

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.