Daily Email Newsletters (Latest Updates/Articles) — Sign up for Free

Section 232, Contract Act 1872: Performance Of Contract With Agent Supposed To Be Principal

Section 232 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Performance of contract with agent supposed to be principal', is reproduced hereunder:—

“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.”

No comments:

Post a Comment