(a) A consigns goods to B for sale, and gives him instructions not to sell under a fixed price. C, being ignorant of B’s instructions, enters into a contract with B to buy the goods at a price lower than the reserved price. A is bound by the contract.

(b) A entrusts B with negotiable instruments endorsed in blank. B sells them to C in violation of private orders from A. The sale is good. 238. 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

(a) A, being B’s agent for the sale of goods, induces C to buy them by a misrepresentation, which he was not authorized by B to make. The contract is voidable, as between B and C, at the option of C.

(b) A, the captain of B’s ship, signs bills of lading without having received on board the goods mentioned therein. The bills of lading are void as between B and the pretended cosignor. 51 CHAPTER XI.—[OF PARTNERSHIP.]Rep. by the Indian Partnership Act, 1932 (9 of 1932), s. 73 and the Second Schedule. 239. [‘Partnership’ defined.] Rep. by s. 73 and the Second Schedule, ibid. 240. [Lender not a partner by advancing money for share of profits.] Rep. by s. 73 and the Second Schedule, ibid. 241. [Property left in business by retiring partner, or decreased partner’s preventative.] Rep. by s. 73 and the Second Schedule, ibid. 242. [Servant or agent remunerated by share of profits, not a partner.] Rep. by s. 73 and the Second Schedule, ibid. 243. [Widow or child of deceased partner receiving annuity out of profits, not a partner.] Rep. by s. 73 and the Second Schedule, ibid. 244. [Person receiving portion of profits for sale of good-will, no a partner.] Rep. by s. 73 and the Second Schedule, ibid. 245. [Responsibility of person leading another to believe him a partner.] Rep. by s. 73 and the Second Schedule, ibid. 246. [Liability of person permitting him self to be represented as a partner.] Rep. by s. 73 and the Second Schedule, ibid. 247. [Minor partner not personally liable, but his share is.] Rep. by s. 73 and the Second Schedule, ibid. 248. [Liability of minor partner on attaining majority.] Rep. by s. 73 and the Second Schedule, ibid 249. [Partner’s liability for debts of partnership.] Rep. bys. 73 and the Second Schedule, ibid. 250. [Partner’s liability to third person for neglect or fraud of co-partner.] Rep. by s. 73 and the Second Schedule, ibid. 251. [Partner’s power to bind co-partners.] Rep. by s. 73 and the Second Schedule, ibid. 252. [Annulment of contract defining partner’s rights and obligations.] Rep. by s. 73 and the Second Schedule, ibid. 253. [Rules determining partner’s mutual relations, where no contract to contrary.] Rep. by s. 73 and the Second Schedule, ibid. 254. [When Court may dissolve partnership.] Rep. by s. 73 and the Second Schedule, ibid. 255. [Dissolution of partnership by prohibition of business.] Rep. by s. 73 and the Second Schedule, ibid. 256. [Rights and obligations of partners in partnership continued after expiry of term for which it was entered into.] Rep. by s. 73 and the Second Schedule, ibid. 257. [General duties of partners.] Rep. by s. 73 and the Second Schedule, ibid 258. [Account, to firm, of benefit derived from transaction affecting partnership.]Rep. by s. 73 and the Second Schedule, ibid. 259. [Obligations, to firm, of partner carrying on business.] Rep. by s. 73 and the Second Schedule, ibid. 52 260. [Revocation of continuing guarantee by charge by change in firm.] Rep. by the Indian Partnership Act, 1932 (9 of 1932), s. 73 and the Second Schedule. 261. [Non-liability of deceased partner’s estate for subsequent obligations.] Rep. by s. 73 and the Second Schedule, ibid. 262. [Payment of partnership debts, and of separate debts.] Rep. by s. 73and the Second Schedule, ibid. 263. [Continuance, of partners rights and obligations after dissolution.] Rep. by s. 73and the Second Schedule, ibid. 264. [Notice of dissolution.] Rep. by s. 73and the Second Schedule, ibid. 265. [Right of partners to apply for winding-up after termination of partnership.] Rep. by s. 73 and the Second Schedule, ibid. 266. [Limited-liability partnerships, incorporate partnerships, and joint-stock companies.] Rep. by s. 73and the Second Schedule, ibid. SCHEDULE.—[Enactments repealed.] Rep. by the Repealing and Amending Act, 1914 (10 of 1914), s. 3 and the Second Schedule. 53