Section 234 Indian Contract Act 1872
Section 234 of the Indian Contract Act 1872 is about Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable. It is under “Effect of agency on contracts with third persons” of CHAPTER X of the Act. CHAPTER X is titled AGENCY.
Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
When a person who has made a contract with an agent induces the agent to act upon the belief that the principal only will be held liable, or induces the principal to act upon the belief that the agent only will be held liable, he cannot afterwards hold liable the agent or principal respectively.
See also:
Section 233 Indian Contract Act 1872 (Right of person dealing with agent personally liable)
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