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vinoth (n/a)     06 November 2007

contract sec230

Their is a madras high court decision regarding sec 230 of contract act referes 2004 MLJ page 599 holding agent is liable for the damages though the principal has been disclosed..NOW I WANT whether any other decision from supreme court after 2004 holding agent is not liable


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 1 Replies

Shambasiv (n/a)     07 November 2007

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[align=left]230.Agent cannot personally enforce, nor be bound by, contractson behalf of principal.-In the absence of any contract to that effect,an agent cannot personally enforce contracts entered into by him on behalf of his principal, nor is he personally bound by them.[/align]
[align=left]Presumption of contract to contrary. Such a contract shall be presumed to exist in the following cases:[/align]
[align=left](1) where the contract is made by an agent for the sale or purchase of goods for a merchant resident abroad;[/align]
[align=left](2) where the agent does not disclose the name of his principal[/align]
[align=left](3) where the principal, though disclosed, cannot be sued.


This would clearly go to show that to make the agent liable, there should be a contract to such effect.
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