Contract law 2 bare act

believe that agent's unauthorised acts were authorised acts

Example I 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

The provisions of the Indian Contract Act, 1872 also apply to firms except where the Indian Partnership Act, 1932, specifically provides to the contrary (Section 3)

Partnership is the relation between two or more persons who have agreed to share profits of a business carried on by all or any of them acting for all

A and B contract that A shall build a house for B at a fixed price

A‟s promise to build the house must be performed before B‟s promise to pay for it

A and B contract that A shall make over his stock-in-trade to B at a fixed price, and B promises to give security for the payment of the money