9 Important Circumstances under Which an Agent is Personally Liable for the Acts of his Principal

(b) Liable when the agent exceeds his authority

(c) Bound by the notice.

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2. Unnamed principal:

In this case the principal will be liable for the contract made by the agent unless there is a trade custom making the agents personally liable.

3. Undisclosed principal:

The agent become personally liable and can be sue and be sued in his own name.

Personal Liability of Agent:

The general rule is that an agent cannot be made personally liable for the contracts entered into by him on behalf of his principal; neither is he personally bound by them.

The circumstances under which an agent is personally liable to his principal acts are as follows:-

1. When he agrees with the concerned parties (Sec. 230).

2. An agent who is not having any authority to act as an agent or who has exceeded the authority and the same has not been ratified by the principal, is personally liable for any loss bearded by a third party (Sec. 235).

3. A person with whom a contract has been entered into in the character of agent is not entitled to require the performance of it, if in reality he was acting not as agent, but as principal (Sec. 236).

4. When he is acting for a foreign principal.

5. Where the agency is coupled with interest that is the agent has interest in the subject matter of the agency.

6. When the agent signs a negotiable instrument in his own name without making it clear that he is signing as an agent.

7. Where trade, usage or customs holds him liable in certain kinds of business.

8. Where the agent acts for a principal who cannot be sued an account of his being a foreign sovereign Ambassador Etc.

9. Where the agents acts for an undisclosed principal.

Where a Government Servant enters into a contract on behalf of the Union of India in disregard of Article 299 (1) of the constitution.

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