Indian Contract Act Section 235 — Liability of pretended agent
CHAPTER X AGENCY — Effect of agency on contracts with third persons
Commercial / Corporate
Summary
A person who falsely claims to be the authorised agent of someone else, and in doing so convinces a third party to do business with them as if they were that agent, becomes responsible for the consequences. If the supposed employer does not later approve or confirm the agent's actions, the false agent must compensate the third party for any loss or damage that the third party suffered because of that business dealing.
Official Text
A person untruly representing himself to be the authorized agent of another, and thereby inducing a third person to deal with him as such agent, is liable, if his alleged employer does not ratify his acts, to make compensation to the other in respect of any loss or damage which he has incurred by so dealing.