796. Responsibility for the fraud of an agent.

796.     Responsibility for the fraud of an agent.

A principal is responsible in tort for a representation made fraudulently by his agent, acting within the scope of his authority1. He is equally responsible where the representation was first made by the agent before the commencement of the agency but continued after its commencement, finally inducing a third person to enter into a contract which the agent made whilst acting within the scope of his authority2. Where an innocent misrepresentation3 is made by an agent, the falsity of the facts of which are known