LawgistThe Indian Contract Act
232Performance of contract with agent supposed to be principal
Where one man makes a contract with another, neither knowing nor having reasonable ground to suspect that the other is an agent, the principal, if he requires the performance of the contract, can only obtain such performance subject to the rights and obligations subsisting between the agent and the other party to the contract.
Illustration
A, who owes 500 rupees to B, sells 1,000 rupees worth of rice to B. A is acting as agent for C in the transaction, but B has no knowledge nor reasonable ground of suspicion that such is the case. C cannot compel B to take the rice without allowing him to set-off A's debt.
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Effect of agency on contracts with third persons
- 226 Enforcement and consequences of agent's contracts
- 227 Principal how far bound, when agent exceeds authority
- 228 Principal not bound when excess of agent's authority is not separable
- 229 Consequences of notice given to agent
- 230 Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231 Rights of parties to a contract made by agent not disclosed
- 232 Performance of contract with agent supposed to be principal
- 233 Right of person dealing with agent personally liable
- 234 Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235 Liability of pretended agent
- 236 Person falsely contracting as agent, not entitled to performance
- 237 Liability of principal inducing belief that agent's unauthorized acts were authorized
- 238 Effect, on agreement, of misrepresentation or fraud by agent
