Section 596
Principal To Be Liable When Leading To Believe That Act Is Done With Authority
ority: (1) If the principal gives information to a third
party that he or she has given authority to another person to act on
his or her behalf or leads the third party to so believe, the principal
shall be liable for any act done by the agent on his or her behalf
unless the third party has come to know or has reasonable ground to
know that the authority has not been so given.
(2) In the cases referred to in sub-section (1), the principal
may be liable even for the act done by the agent beyond the
authority if there is a reasonable ground for the third party to
believe that the agent has authority.
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