alleryStart learning →Without a contrary contract, an agent cannot sue on the contract and is
Anot personally bound
Bjointly liable with him
Cliable for his debts
Da party to the contract
Answer & Solution
Correct answer: A. not personally bound
Section 230 sets the general rule that the agent neither enforces nor is bound by contracts for his principal.
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