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A sells 100 bales of cotton to B and later discovers B acted for an undisclosed principal, C. B is…

Where the agent is personally liable, section 233 allows the person dealing with that agent to hold the agent, the principal, or both liable. The illustration uses the same…

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A sells 100 bales of cotton to B and later discovers B acted for an undisclosed principal, C. B is personally liable on the contract. Under section 233 of the Indian Contract Act, 1872, whom may A sue for the price?

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Answer and explanation

Correct answer C

Where the agent is personally liable, section 233 allows the person dealing with that agent to hold the agent, the principal, or both liable.

The illustration uses the same sale of 100 bales of cotton.

Option feedback

Option A

Section 233 also permits A to hold the personally liable agent liable.

Option B

Section 233 also permits A to hold the principal liable.

Option C

Section 233 permits recourse against the personally liable agent, the principal, or both.

Option D

The section 233 illustration expressly gives A recourse for the price.

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