Law · Indian Contract Act
Identify the INCORRECT statement regarding agency law under the Indian Contract Act, 1872:
- 1A person ratifying any unauthorised act on his behalf ratifies the whole of the transaction of which such act formed a part.
- 2The sub-agent is responsible for his acts to the agent, but not to the principal in cases of fraud or wilful wrong.✓
- 3The agent is responsible to the principal for the acts of the sub-agent.
- 4A 'sub-agent' is a person employed by and acting under the control of the original agent in the business of agency.
Correct answer
The sub-agent is responsible for his acts to the agent, but not to the principal in cases of fraud or wilful wrong.
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