# 232 Performance of contract with agent supposed to be principal

Where one man makes a contract with another, neither knowing nor having reasonable ground to suspect that the other is an agent, the principal, if he requires the performance of the contract, can only obtain such performance subject to the rights and obligations subsisting 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 to B. A is acting as agent for C in the transaction, but B has no knowledge 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's debt.

Download our fully-offline, High speed android app.- Click here

Effect of agency on contracts with third persons

228

Principal not bound when excess of agent's authority is not separable

229

Consequences of notice given to agent

230

Agent cannot personally enforce, nor be bound by, contracts on behalf of principal

231

Rights of parties to a contract made by agent not disclosed

233

Right of person dealing with agent personally liable