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        Indian Laws

        Section 232 - Performance of contract with agent supposed to be principal

        Indian Contract Act, 1872
        Chapter Xf
        Effect of agency on contract with third persons

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        Agency disclosure: principal's enforcement of contract is subject to existing agent-third party rights, permitting set-off where applicable. When a person contracts with another without reasonable ground to suspect agency, the principal seeking performance acquires the contract subject to rights and obligations existing between the agent and the third party; consequently, enforcement by the principal must accommodate intervening rights such as a right of set-off held by the third party against the agent.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Agency disclosure: principal's enforcement of contract is subject to existing agent-third party rights, permitting set-off where applicable.

                              When a person contracts with another without reasonable ground to suspect agency, the principal seeking performance acquires the contract subject to rights and obligations existing between the agent and the third party; consequently, enforcement by the principal must accommodate intervening rights such as a right of set-off held by the third party against the agent.


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