Subject Business Laws :

Question -

Prakash permits Anurag to tell Shashank that he (Anurag) was working as the agent of Prakash. Taking Anurag to be Prakash's agent, Shashank supplies some goods to Anurag. Later, Prakash prefers to take the plea that Anurag was, in fact, not his agent. Accordingly, he cannot be held liable to make the payment for the goods supplied by Shashank to Anurag. Do you think that the plea taken by Prakash will be held valid in the eye of law? Give reasons for your answer.