What is the Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable? What is the Liability of pretended agent? Section 234 and 235 of Indian Contract Act 1872
234. When a person who has made a contract with an agent induces the agent to act upon the belief that the principal only will be held liable, or induces the principal to act upon the belief that the agent only will be held liable, he cannot afterwards hold liable the agent or principal respectively.
235. A person untruly representing himself to be the authorised agent of another, and thereby inducing a third person to deal with him as such agent, is liable, if his alleged employer does not ratify his acts, to make compensation to the other in respect of any loss or damage which he has incurred by so dealing.
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 234 - Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively 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