Section 229 The Indian Contract Act, 1872
Section 229 of the Indian Contract Act, 1872 states:
Section 229 – Consequences of notice given to agent
Any notice given to or information obtained by an agent, provided it is given or obtained in the course of the business transacted by him for the principal, shall, as between the principal and third parties, have the same legal consequences as if it had been given to or obtained by the principal himself.
Explanation:
When an agent receives notice or information while doing work for the principal, it is treated as if the principal personally received that notice or information.
This is based on the legal principle that knowledge of the agent is knowledge of the principal, if acquired in the course of agency business.
Key Points:
Applies only to knowledge gained in the course of agency.
Principal is bound by the notice or information received by the agent.
Helps ensure third parties dealing with agents are protected and not required to contact the principal directly.
Illustration:
A, an agent of B, receives a notice from C regarding a defect in goods supplied. A does not inform B. Later, B cannot claim ignorance of the defect, because A received the notice while acting as B’s agent.
RELATED Blog
0 comments