Section 238 in The Indian Contract Act, 1872

Title: Effect, on agreement, of misrepresentation or fraud by agent.

Description: 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.

Title: Repealed

Description: ['Partnership' defined.] Rep. by s. 73 and the Second Schedule, ibid.

Title: Repealed

Description: ['Partnership' defined.] Rep. by s. 73 and the Second Schedule, ibid.

Title: Repealed

Description: [Property left in business by retiring partner, or decreased partner's preventative.] Rep. by s. 73 and the Second Schedule, ibid.

Title: Repealed

Description: [Servant or agent remunerated by share of profits, not a partner.] Rep. by s. 73 and the Second Schedule, ibid.

CHAPTER 10 AGENCY – EFFECT OF AGENCY ON CONTRACTS WITH THIRD PERSONS