Indian Contract Act,1872
Act No : 9
Section : Performance of contract with agent supposed to be principal
232.Performance of contract with agent supposed to be principal.-Where one man makes a contract with another, neither knowing norhaving reasonable ground to suspect that the other is an agent, theprincipal, if he requires the performance of the contract, can onlyobtain such performance subject to the rights and obligationssubsisting between the agent and the other party to the contract. Illustration A, who owes 500 rupees to B, sells 1,000 rupees' worth of rice toB. A is acting as agent for C in the transaction, but B has noknowledge nor reasonable ground of suspicion that such is the case.C cannot compel B to take the rice without allowing him to set-off A'sdebt.
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