An agent exceeds authority and the part within it is separable. What binds the principal?
AEverything he did
BNothing that he did
COnly the authorised part
DOnly the excess part
Answer & Solution
Correct answer: C. Only the authorised part
Section 227 binds the principal only to the severable part that lay within the agent's authority.
Keep practising Agency
Browse all Agency questions for CA Foundation, or explore more Businesslaw topics.
Related questions
An agent for sale makes an unauthorised misrepresentation and C buys. The contract isFrauds by agents in matters outside their authorityA tells B not to sell below a set price, but C, unaware, buys below it from B. A isA principal who made third persons believe an agent's acts were authorised isA person who contracted as agent but really acted on his own accountA person untruly claims to be an agent and no ratification follows. He mustA third party induces belief that only the principal is liable. He laterA sells cotton to B and later learns B was agent for C. A may sue