Effect, on agreement, of misrepresentation of fraud, by agent.

Misrepresentation made, or frauds committed, by agents acting in the course of their business for their principals, have the same effect on agreements made by such agents as if such misrepresentations or frauds had been made or committed by the principals; but misrepresentations made, or frauds committed, by agents, in matters which do not fall within their authority, do not affect their principals. Illustrations CHAPTER XI.—[OF PARTNERSHIP.]Rep. by the Indian Partnership Act, 1932 (9 of 1932), s. 73 and the Second Schedule.