Section 596: Principal to be liable when leading to believe that act is done with authority

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.