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        Indian Laws

        Section 237 - Liability of principal inducing belief that agent's unauthorized acts were authorized

        Indian Contract Act, 1872
        Chapter Xf
        Effect of agency on contract with third persons

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        Principal liability for apparent authority: a principal is bound when conduct induces belief the agent had authority. When an agent, without authority, has done acts or incurred obligations to third persons on behalf of his principal, the principal is bound by such acts or obligations if he has by his words or conduct induced such third persons to believe that such acts and obligations were within the scope of the agent's authority.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Principal liability for apparent authority: a principal is bound when conduct induces belief the agent had authority.

                              When an agent, without authority, has done acts or incurred obligations to third persons on behalf of his principal, the principal is bound by such acts or obligations if he has by his words or conduct induced such third persons to believe that such acts and obligations were within the scope of the agent's authority.


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