PRINCIPAL TO PRINCIPAL CONTRACT

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sirs, I want to know the features of PRINCIPAL TO PRINCIPAL CONTRACT and its application. May I kindly be advised in this regard? Regards, M. GOVINDARAJAN

[CAGOPALJI AGRAWAL]

If as per Contract Act, there is no agency relationship between the parties, then it is treated as principal to principal relationship.Kindly refer the provisions of section 182 onward of the said Act.

AI Summary

Principal to Principal relationship arises where no agency exists, treated under governing contract law provisions and obligations.
Where parties lack an agency relationship, their dealings constitute a Principal to Principal relationship, meaning no authority is delegated and no agent fiduciary duties arise; consequently parties retain independent contractual obligations and rights under the general law of contracts and the Contract Act provisions referenced in the source.