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Section 182 of the Indian Contract Act defines an 'agent' as a person:
AHolding pledged goods on behalf of a creditor
BStanding surety for a third party's debt
CEntrusted only with custodial possession of property
DEmployed to do any act for another or to represent another in dealings with third persons
Answer & Solution
Correct answer: D. Employed to do any act for another or to represent another in dealings with third persons
1. Section 182 defines both agent and principal.
2. An agent is appointed to act for another OR to represent another in dealings with third parties.
3. The 'principal' is the one for whom the agent acts.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_