Section 234: Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable

Questions on this section

1 question in 3 of our papers cite Section 234. Try these from the free papers:

1. 1. B, acting for P but without disclosing P's name, buys goods from X on credit. X later learns of P and tells B that he will look to P alone for the price. Relying on this, B settles his accounts with P. P then fails to pay. Under Section 234 of the Indian Contract Act, 1872, X:

   A.cannot afterwards hold B liable for the priceB.may hold B liable, but only for one-half of the priceC.may hold B liable, as B did not disclose P's name at firstD.may hold B and P jointly liable under Section 233
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