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Agency by holding out

The principal is bound by the acts of the agent if, on earlier occasion, he made other persons to believe that the person doing the same acts on his behalf is doing with authority.

Example B is a servant of A, B buys goods on credit from C and A pay for them regularly. B buys the goods from C on credit for personal use. A is liable to C for payments.

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Q: What is the agency by holding out?
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