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When the agent contracts without-disclosing name and existence of his principal, in such a case on knowing about the principal, the third party may file a suit against:
principal alone.
agent alone.
either agent or principal or both.
none of the above.
- When an agent contracts without disclosing even the existence and name of the principal, the contract is made as if the agent is acting on his own behalf.
- If later, the third party finds out about the principal, the law (Section 231 of Indian Contract Act) allows the third party to choose who to sue.
- The third party can sue the principal, the agent, or both (unless the contract specifically excludes this right).
- This gives more flexibility and protection to the third party, as he was unaware of the principal at the time of contract.
Correct Answer:
- Option:3, either agent or principal or both.
By: santosh ProfileResourcesReport error
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