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agency

Corporate & Other Laws

doubt with regard to law of agency, video no 36. when Mr x has purchased at discount from agent ram on consultation with principal shyam then ram would be excluded of any liability, but how is shyam held liable. it should be Mr x who would be held liable to Shyam if shyam had not agreed for the discount. Shyam would anyway be held liable for supply of stale sweets to mr x because principal is binding for the acts of the agent. Also Mr x purchasing from ram at discount price by making shyam know of this fact and with the intention of making ram to be held liable will amount to cheating by mr x and shyam. how can agent ram be held liable in such a case

anil vagvala

CA Inter

★ 720

21-Oct-20 14:10

379

Answers (1)

If A enters into contract with the agent and make the agent belive that only principal will be held liable, then later on A cannot hold the agent liable. If A enters into contract with the principal and make the principal believe that only the agent will be held liable, then later on A cannot hold the principal liable.