Indian Contract Act,1872

Act No : 9

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Section : Consequences of notice given to agent

229.Consequences of notice given to agent.-Any notice given to orinformation obtained by the agent, provided it be given or obtained inthe course of the business transacted by him for the principal, shall,as between the principal and third parties, have the same legalconsequences as if it had been given to or obtained by the principal. Illustrations (a)A is employed by B to buy from C certain goods, of which C isthe apparent owner, and buys them accordingly. In the course of thetreaty for the sale, A learns that the goods really belonged to D, butB is ignorant of that fact. B is not entitled to set-off a debt owingto him from C against the price of the goods. (b)A is employed by B to buy from C goods of which C is theapparent owner. A was, before he was so employed, a servant of C, andthen learnt that the goods really belonged to D, but B is ignorant ofthat fact. In spite of the knowledge of his agent, B may set-offagainst the price of the goods a debt owing to him from C.

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