What is the meaning of Performance of contract with agent supposed to be principal? What is Right of person dealing with agent personally liable? Section 232 and 233 of Indian Contract Act 1872
232. 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.
233. In cases where the agent is personally liable, a person dealing with him may hold either him or his principal, or both of them, liable.
Illustration
A enters into a contract with B to sell him 100 bales of cotton,
and afterwards discovers that B was acting as agent for C. A may
sue either B or C, or both, for the price of the cotton.
Section 226 - Enforcement and consequences of agent's contracts
Section 227 - Principal how for bound, when agent exceeds authority
Section 228 - Principal not bound when excess of agent's authority is not separable
Section 229 - Consequences of notice given to agent
Section 230 - Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
Section 231 - Rights of parties to a contract made by agent not disclosed
Section 232 - Performance of contract with agent supposed to be principal
Section 233 - Right of person dealing with agent personally liable
Section 235 - Liability of pretended agent
Section 236 - Person falsely contracting as agent not entitled to performance
Section 237 - Liability of principal inducing belief that agent's unauthorized acts were authorized
Section 238 - Effect, on agreement, of misrepresentation or fraud by agent