Section 232 - Performance of contract with agent supposed to be
principal, Section 233 - Right of person dealing with agent
personally liable : Indian Contract Act
What is the meaning of Performance of contract with agent supposed
to be principal? What is Right of person dealing with agent
personally liable? Section 232 and 233 of Indian Contract Act
Section 232 of Indian Contract Act 1872 : "Performance of
contract with agent supposed to be principal"
232. 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.
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.
Section 233 of Indian Contract Act 1872 : "Right of person
dealing with agent personally liable"
233. In cases where the agent is personally liable, a person
dealing with him may hold either him or his principal, or both
of them, liable.
A enters into a contract with B to sell him 100 bales of cotton,
and afterwards discovers that B was acting as agent for C. A may
sue either B or C, or both, for the price of the cotton.