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CHAPTER X AGENCY · Effect of agency on contracts with third persons

Section 226: Enforcement and consequences of agent’s contracts

The Indian Contract Act, 1872

Contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner, and will have the same legal consequences, as if the contracts had been entered into and the acts done by the principal in person.

Illustrations

(a)A buys goods from B, knowing that he is an agent for their sale, but not knowing who is the principal. B’s principal is the person entitled to claim from A the price of the goods, and A cannot, in a suit by the principal, set-off against that claim a debt due to himself from B.

(b)A, being B’s agent, with authority to receive money on his behalf, receives from C a sum of money due to B. C is discharged of his obligation to pay the sum in question to B.

Questions on this section

2 questions in 2 of our papers cite Section 226. Try these from the free papers:

  1. 1. "Qui facit per alium facit per se" means a person who acts through another:

Practise questions on Contract Law