Under Section 238, a misrepresentation or fraud by an agent acting within the course of his business:
AHas the same effect on the agreement as if made by the principal himself
BVoids the agency
CNever affects the principal
DBinds only the agent personally
Answer & Solution
Correct answer: A. Has the same effect on the agreement as if made by the principal himself
Section 238 treats frauds/misrepresentations by an agent within his authority as those of the principal; but acts outside the agent's authority do not affect the principal.
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