Section 226 The Indian Contract Act, 1872

Section 226 of the Indian Contract Act, 1872 deals with the enforcement and consequences of contracts made by agents.

πŸ”Ή Section 226 – Enforcement and consequences of agent’s contracts

"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."

βœ… Explanation:

When an agent enters into a contract within the scope of their authority, the contract is legally binding on the principal, not the agent.

It is as if the principal himself made the contract or performed the act.

πŸ“Œ Example:

A authorizes B, his agent, to buy goods from C.

B enters into a contract with C on A’s behalf.

A is bound by the contract, and C can sue A directly (not B), since the law treats it as if A himself made the contract.

πŸ” Key Concept:

This section reflects the foundation of agency law β€” that an agent acts on behalf of and binds the principal.

 

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