Santi Nath Halder 25 January 2021

Contract of Guarantee

"An agent cannot enter into a contract of guarantee on behalf of his principal"- Do you Agree? Do you think the principal can subsequently ratify such an agreement if the agent does enter into such a contract?

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Quick Summary

This discussion delves into the legal capacity of an agent to enter into a contract of guarantee for their principal. It questions whether such an action is permissible and if a principal can later ratify a guarantee agreement made by their agent. The thread aims to clarify the rules surrounding agency, principal liability, and the specific nature of guarantee contracts.

2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 25 January 2021

Agents often sign on behalf of principals, and when the authorized agent makes clear that she is so signing—by naming the principal and signing her name as “agent”—the principal is liable, not the agent.