Legal World

Section 226 Contract Act — Enforcement and consequences of agent ’s contracts

The Indian Contract Act, 1872 · Official PDF page 49

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226. Enforcement and consequences of agent ’s contracts.—Contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner, and will have the same legal consequences, as if the contracts had been entered into and the acts d one by the principal in person.

Illustrations (a)A buys goods from B, knowing that he is an agent for their sale, but not knowing who is the principal. B ’s principal is the person entitled to claim from A the price of the goods, and A cannot, in a suit by the principal, set-off against that clai m a debt due to himself from B. (b)A, being B ’s agent , with authority to receive money on his behalf, receives from C a sum of money due to B. C is discharged of his obligation to pay the sum in question to B.

Text extracted from the official PDF (India Code source copy; consolidation date not certified). Line breaks and footnote marks may differ; the PDF is the authority.

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