Site navigation

A is employed by B to buy from C goods of which C is the apparent owner. Before he was so employed, A…

Section 229 imputes to the principal only notice or information obtained by the agent "in the course of the business transacted by him for the principal". Illustration (b)…

Choose your answer

A is employed by B to buy from C goods of which C is the apparent owner. Before he was so employed, A was a servant of C and then learnt that the goods really belonged to D. B does not know this. Can B set off against the price of the goods a debt owing to him from C?

Select one answer
Answer and explanation

Correct answer B

Section 229 imputes to the principal only notice or information obtained by the agent "in the course of the business transacted by him for the principal". Illustration (b) to section 229 holds that, in spite of the knowledge of his agent, B may set off against the price a debt owing to him from C. A's knowledge came from his earlier service with C, before the agency began, so it is not imputed to B.

Practice for these exams

Related exam syllabi

Related questions in this topic