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A sells 100 bales of cotton to B and later learns that B acted as agent for the undisclosed principal…

Section 233 permits the contracting party to hold the personally liable agent, the principal, or both liable. Its illustration uses the same sale of 100 bales of cotton.

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

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Answer and explanation

Correct answer C

Section 233 permits the contracting party to hold the personally liable agent, the principal, or both liable. Its illustration uses the same sale of 100 bales of cotton.

Option feedback

Option A

Section 233 permits recourse against the personally liable agent as well as the principal.

Option B

Section 233 permits recourse against the principal as well as the agent.

Option C

Section 233 permits the person dealing with a personally liable agent to hold the agent, the principal, or both liable.

Option D

Section 233 expressly provides recourse on the stated facts.

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