Performance of contract with agent supposed to be principal
Chapter 11: Agency
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.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 229Consequences of notice given to agent
- 230Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231Rights of parties to a contract made by agent not disclosed
- 233Right of person dealing with agent personally liable
- 234Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235Liability of pretended agent