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A agrees to sell 100 bales of cotton to an agent who is personally liable on the contract. A later…

Under section 233 of the Indian Contract Act, 1872, a person who deals with an agent who is personally liable may hold the agent, the principal, or both liable. The Act…

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A agrees to sell 100 bales of cotton to an agent who is personally liable on the contract. A later discovers that the agent acted for an undisclosed principal. Whom may A sue for the unpaid price?

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Answer and explanation

Correct answer C

Under section 233 of the Indian Contract Act, 1872, a person who deals with an agent who is personally liable may hold the agent, the principal, or both liable. The Act illustrates that rule with a sale of 100 bales of cotton.

Option feedback

Option A

The agent is personally liable, and section 233 also allows a claim against the principal.

Option B

Section 233 also allows a claim against the personally liable agent.

Option C

Section 233 allows a claim against the personally liable agent, the principal, or both.

Option D

Section 233 gives the seller a remedy against the agent, the principal, or both.

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