Section 182 The Indian Contract Act, 1872
Section 182 of the Indian Contract Act, 1872 pertains to the liability of the principal for acts done without authority in the name of the principal.
🔹 Section 182 – Liability of principal for acts done without authority
"If a person fraudulently represents himself to be the agent of another, and in that character acts to the injury of a third party, the person so acting is liable to indemnify the person so injured."
🔍 Explanation:
This section deals with unauthorized agency or false agency.
If someone pretends to be an agent of another person (principal) without actual authority, and by doing so causes loss or injury to a third party, then:
The person pretending to be the agent is personally liable for the loss caused.
The real principal is not liable because there was no authority given.
📌 Example:
A falsely claims to be the agent of B and contracts with C.
If C suffers a loss due to A’s unauthorized act, A must compensate C.
B (the real principal) is not bound because A had no authority.
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