153. Fraudulent misrepresentation by agent.

153.     Fraudulent misrepresentation by agent.

Where an agent is personally guilty of fraudulent misrepresentation1 and has actual or apparent authority to make the representation, the principal is responsible as for any other tort, and a claim of deceit lies against him2. It is irrelevant that the fraudulent misrepresentation was made before the agent's authority was granted if the misrepresentation is not corrected before the third party acts upon it3. Where the agent makes a representation which he honestly believes to be true, but which the principal knows to be false, the principal is responsible