Lawgist238Effect, on agreement, of misrepresentation or 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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- 226 Enforcement and consequences of agent's contracts
- 227 Principal how far bound, when agent exceeds authority
- 228 Principal not bound when excess of agent's authority is not separable
- 229 Consequences of notice given to agent
- 230 Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231 Rights of parties to a contract made by agent not disclosed
- 232 Performance of contract with agent supposed to be principal
- 233 Right of person dealing with agent personally liable
- 234 Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235 Liability of pretended agent
- 236 Person falsely contracting as agent, not entitled to performance
- 237 Liability of principal inducing belief that agent's unauthorized acts were authorized
- 238 Effect, on agreement, of misrepresentation or fraud by agent
