Indian Contract Act : Rights of parties to a contract made by agent not disclosed Indian Bare Acts :

Indian Contract Act,1872

Act No : 9

Section : Rights of parties to a contract made by agent not disclosed

231.Rights of parties to a contract made by agent not disclosed.-If an agent makes a contract with a person who neither knows, nor hasreason to suspect, that he is an agent, his principal may require theperformance of the contract ; but the other contracting party has, asagainst the principal, the same rights as he would have had as againstthe agent if the agent had been principal. If the principal discloses himself before the contract iscompleted, the other contracting party may refuse to fulfil thecontract, if he can show that, if he had known who was the principalin the contract, or if he had known that the agent. was not aprincipal, he would not have entered into the contract.