Contract for Nonexisting Principal Void; Right of Action Against Purported Agent

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The contract of any person or corporation who purports as agent of a nonexisting principal to bind such nonexisting principal only shall be void. Any other party to such contract who is misled thereby to his injury shall have a right of action for damages against such purported agent individually.

(Code 1933, § 4-410, enacted by Ga. L. 1955, p. 346, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 3 Am. Jur. 2d, Agency, § 277.

C.J.S.

- 2A C.J.S., Agency, § 397.

ALR.

- Liability on the contract of one who without authority assumes to contract for another, 42 A.L.R. 1310; 60 A.L.R. 1348.

Personal liability of one who assumes to contract as agent for a principal who is fictitious or nonexistent, 126 A.L.R. 114.

ARTICLE 5 AGENTS RECEIVING MONEYS FOR THIRD PERSONS

Cross references.

- Duties and liabilities of banks and trust companies receiving money for transmission, § 7-1-354.

RESEARCH REFERENCES

ALR.

- Check on bank as payment of debts held by bank for collection, 18 A.L.R. 537; 65 A.L.R. 1151.

Liability of principal for amount of fraudulent excess collection by agent, 46 A.L.R. 1212.


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