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Report No. 13

176. Sections 234-237.-

No change is recommended in sections 234-237.

177. The rule that agency can be created by estoppel should be incorporated in a new section.1 That rule may be stated thus: Where any person, by words or conduct, represents or permits it to be represented that another person has authority to act on his behalf, he is bound by the acts of such other person with respect to any one dealing with him as an agent on the faith of such representation, to the same extent as if such other person had the authority which he was so represented to have.

1. Vide section 237A, App I.



Indian Contract Act, 1872 Back




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