Under the Indian Contract Act, 1872, in which of the following cases, the presumption of the agent's…
Section 230 of the Indian Contract Act, 1872 lays down that, in the absence of a contract to that effect, an agent is not personally bound by contracts made on behalf of his…
Choose your answer
Under the Indian Contract Act, 1872, in which of the following cases, the presumption of the agent's personal liability does not arise?
Answer and explanation
Correct answer D
Section 230 of the Indian Contract Act, 1872 lays down that, in the absence of a contract to that effect, an agent is not personally bound by contracts made on behalf of his principal, but presumes such a contract where he contracts for the sale or purchase of goods for a merchant resident abroad, where he does not disclose the name of his principal, and where the principal, though disclosed, cannot be sued. None of the following applies "Where the agent contracts in the name of a disclosed principal who is competent to contract and can be sued", so the ordinary rule applies and no presumption of the agent's personal liability arises.
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