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    proposals and acceptances$ respecti0ely$ are deemed to be made by any act or omission ofthe party proposing$ accepting or re0o3ing by which he intends to comm,nicate s,ch

    proposal acceptance or re0ocation$ or which($ has the effect of comm,nicating it(4- #omm,nication when complete ! "he comm,nication of a proposal is complete when it comes to the 3nowledge of the person

    to whom it is made( "he comm,nication of an acceptance is complete$ - as against the proposer$ when it is p,t in a co,rse of transmission to him$ so as to be o,t of

    the power of the acceptor; as against the acceptor$ when it comes to the$ 3nowledge$ of the proposer( "he comm,nication of a re0ocation is complete$ - as against the person who ma3es it$ when it is p,t into a co,rse of transmission to the person

    to whom it is made$ so as 5to be o,t of the power of the person who ma3es it; as against the person( to whom it is made$ when it comes( to his 3nowledge( Ill,strations

    &a' A propo*)*, 0 )tt)r, to *) a ho *) to ; at a c)rtain pric). Th)

    co// nication o th) propo*a i* co/p )t) -h)n ; r)c)i )* th) )tt)r.

    & ' ; acc)pt* A

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    In order to con0ert a proposal into a promise$ the acceptance m,st- 9 : be absol,te and ,n ,alified; 9': be expressed in Some ,s,al and reasonable manner$ ,nless the proposal prescribes the

    manner in which it is to be accepted( If the proposal prescribes a manner in which it isto be accepted$ and the acceptance is not made in s,ch manner$ the proposer may$

    within a reasonable time after the acceptance is comm,nicated to him$ insist that his proposal shall be accepted in the prescribed manner$ and not otherwise; b,t if he failsto do so$ he accepts the acceptance(

    %- Acceptance by performing conditions$ or recei0ing consideration - Performance of the conditions of a proposal$ or the acceptance of any consideration for a

    reciprocal promise which may be offered with a proposal$ is an acceptance of the proposal(

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    4- 5?ree consent5 defined(-#onsent is said to be free when it is not ca,sed by ! 9 : coercion$ as defined in section 6$ or 9': ,nd,e infl,ence$ as defined in section 8$ or 92: fra,d$ as defined in section &$ or 94: misrepresentation$ as defined in section %$ or

    96: mista3e$ s,b>ect to the pro0isions of sections '=$ ' and ''( #onsent is said to be so ca,sed when it wo,ld not ha0e been gi0en b,t for the

    existence of s,ch coercion$ ,nd,e infl,ence$ fra,d$ misrepresentation or mista3e(6- 5#oercion5 defined ! 5#oercion5 is the committing$ or threatening to commit$ any act forbidden by the Indian

    Penal #ode$ or the ,nlawf,l detaining$ or threatening to detain$ any property$ to the pre>,dice of any person whate0er$ with the intention of ca,sing any person to enter into anagreement( 946 of %8=(:

    Explanation(-It is immaterial whether the Indian Penal #ode is or is not in force in the placewhere the coercion is employed( 946 of %8=(:

    Ill,stration A$ on board an English ship on the high seas$ ca,ses 7 to enter into an agreement by an act

    amo,nting to criminal intimidation ,nder the Indian Penal #ode( 946 of %8=(: A afterwardss,es 7 for breach of contract at #alc,tta(

    A has employed coercion$ altho,gh his act is not an offence by the law of England$ andaltho,gh section 6=8 of the Indian Penal #ode was not in force at the time when or placewhere the act was done(946 of %8=(:

    8- 5@nd,e infl,ence5 defined( defined - 9 : A contract is said to be ind,ced by 5,nd,e infl,ence where the relations s,bsisting

    between the parties are s,ch that one of the parties is in a position to dominate thewill of the other and ,ses that position to obtain an ,nfair ad0antage o0er the other(

    9': In partic,lar and witho,t pre>,dice to the generality of the foregoing principle$ a person is deemed to be in a position to dominate the will of another-

    &a' -h)r) h) ho d* a r)a or appar)nt a thorit0 o )r th) oth)r or -h)r) h)*tand* in a id ciar0 r) ation to th) oth)r> or

    & ' -h)r) h) /a3)* a contract -ith a p)r*on -ho*) /)nta capacit0 i*

    t)/porari 0 or p)r/an)nt 0 a )ct)d 0 r)a*on o a+), i n)**, or /)nta orodi 0 di*tr)**.

    92: Where a person who is in a position to dominate the will of another$ enters into acontract with him$ and the transaction appears$ on the face of it or on the e0idenceadd,ced$ to be ,nconscionable$ the b,rden of pro0ing that s,ch contract was notind,ced by ,nd,e infl,ence shall lie ,pon the person in a position to dominate thewill of the other(

    /othing in this s,b-section shall affect the pro0isions of section Ill of the IndianE0idence Act$ %&'( 9 of %&'(:

    Ill,strations

    &a' A ha in+ ad anc)d /on)0 to hi* *on, ; d rin+ hi* /inorit0, pon ;

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    a* hi* /)dica att)ndant, to a+r)) to pa0 ; an nr)a*ona ) * / or hi*pro )**iona *)r ic)*. ; )/p o0* nd ) in )nc).

    &c' A, )in+ in d) t to ;, th) /on)06 )nd)r o hi* i a+), contract* a r)*h

    oan on t)r/* -hich app)ar to ) ncon*ciona ). It i)* on ; to pro ) thatth) contract -a* not ind c)d 0 nd ) in )nc).

    &d' A app i)* to a an3)r or a oan at a ti/) -h)n th)r) i* *trin+)nc0 in th)/on)0 /ar3)t. Th) an3)r d)c in)* to /a3) th) oan )?c)pt at ann * a 0 hi+h rat) o int)r)*t. A acc)pt* th) oan on th)*) t)r/*. Thi* i* atran*action in th) ordinar0 co r*) o *in)**, and th) contract i* notind c)d 0 nd ) in )nc).

    &- 5?ra,d5 defined(- 5?ra,d5 means and incl,des any of the following acts committed by a party to a

    contract$ or with his conni0ance$ or by his agent$ with intent to decei0e another partythereto of his agent$ or to ind,ce him to enter into the contract1-

    9 : the s,ggestion$ as a fact$ of that which is not tr,e$ by one who does not belie0e it to betr,e;

    9': the acti0e concealment of a fact by one ha0ing 3nowledge or belief of the fact; 92: a promise made witho,t any intention of performing it 94: any other act fitted to decei0e; 96: any s,ch act or omission as the law specially declares to be fra,d,lent( Explanation(- Bere silence as to facts li3ely to affect the willingness of a person to

    enter into a contract is not fra,d$ ,nless the circ,mstances of the case are s,ch that$regard being had to them$ it is the d,ty of the person 3eeping silence to spea3$ ) or,nless his silence is$ in itself$ e ,i0alent to speech(

    Ill,strations

    &a' A *) *, 0 a ction, to ;, a hor*) -hich A 3no-* to ) n*o nd. A *a0*nothin+ to ; a o t th) hor*),dice or to the pre>,dice of any one claiming ,nder him;

    92: ca,sing$ howe0er innocently$ a party to an agreement to ma3e a mista3e as to thes,bstance of the thing which is the s,b>ect of the agreement(

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    interest at 8 per cent( per month( "he #o,rt may set the bond aside$ordering 7 to repay the Rs( == with s,ch interest as may seem >,st(Agreement 0oid where both parties are ,nder mista3e as to matter offact(

    '=- (((((((((((

    Agreement 0oid where both parties are ,nder mista3e as to matter of fact( Where both the parties to an agreement are ,nder a mista3e as to a matter of fact essential to the agreement$the agreement is 0oid(

    Explanation(- An erroneo,s opinion as to the 0al,e of the thing which forms the s,b>ect-matter of the agreement is not to be deemed a mista3e as to a matter of fact(

    Ill,strations

    &a' A a+r))* to *) to ; a *p)ci ic car+o o +ood* * ppo*)d to ) on it* -a0ro/ En+ and to ;o/ a0. It t rn* o t that, ) or) th) da0 o th) ar+ain,th) *hip con )0in+ th) car+o had ))n ca*t a-a0 and th) +ood* o*t.N)ith)r part0 -a* a-ar) o th) act*. Th) a+r))/)nt i* oid.

    & ' A a+r))* to 0 ro/ ; a c)rtain hor*). It t rn* o t that th) hor*) -a*

    d)ad at th) ti/) o th) ar+ain, tho +h n)ith)r part0 -a* a-ar) o th)act. Th) a+r))/)nt i* oid.

    &c' A, )in+ )ntit )d to an )*tat) or th) i ) o ;, a+r))* to *) it to C. ; -a*

    d)ad at th) ti/) o th) a+r))/)nt, t oth parti)* -)r) i+norant o th)act. Th) a+r))/)nt i* oid.

    ' - Effect of mista3es as to law ! A contract is not 0oidable beca,se it was ca,sed by a mista3e as to any law in force in

    )*India.; b,t a mista3e as to a law not in force in *India. has the same effect as a mista3e offact(

    Ill,stration A and 7 ma3e a contract gro,nded on the erroneo,s belief that a partic,lar debt is barred by

    the Indian aw of imitation1 the contract is not 0oidable(''- #ontract ca,sed by mista3e of one party as to matter of fact ! A contract is not 0oidable merely beca,se it was ca,sed by one of the parties to it being

    ,nder a mista3e as to a matter of fact('2- What considerations and ob>ects are lawf,l and what not ! "he consideration or ob>ect of an agreement is lawf,l$ ,nless- it is forbidden by law; or is of

    s,ch a nat,re that$ if permitted$ it wo,ld defeat the Pro0isions of any law; or is fra,d,lent;or in0ol0es or implies in>,ry to the person or property of another or; the #o,rt regards it asimmoral$ or opposed to p,blic policy(

    In each of these cases$ the consideration or ob>ect of an agreement is said to be ,nlawf,l(E0ery agreement of which the ob>ect or consideration is ,nlawf,l is 0oid(

    Ill,strations

    &a' A a+r))* to *) hi* ho *) to ; or 1 , r p))*. H)r) ;

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    oth)r part0 and th)0 ar) a- con*id)ration*.

    &c' A pro/i*)*, or a c)rtain * / paid to hi/ 0 ;, to /a3) +ood to ; th)a ) o hi* *hip i it i* -r)c3)d on a c)rtain o0a+). H)r) Aect of ADs promise$ and the consideration for 7Ds promise$ being in

    part ,nlawf,l('6- Agreement witho,t consideration$ 0oid$ ,ncles it is in writing and registered$ or is a promise

    to compensate for something done$ or is a promise to pay a debt barred by limitation law - An agreement made witho,t consideration is 0oid$ ,nless ! 9 : it is expressed in writing and registered ,nder the law for the time being in force for

    the registration of )*doc,ments.$ and is made on acco,nt of nat,ral lo0e and

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    affection between parties standing in a$ near relation to each other ; or ,nless 9': it is a promise to compensate$ wholly or in part$ a person who has already 0ol,ntarily

    done something for the promisor$ or something which the promisor was legallycompellable to do ; or ,nless

    92: it is a promise$ made in writing and signed by the person to be charged therewith$ or

    by his agent generally or specially a,thoriFed in that behalf$ to pay wholly or in part adebt of which the creditor might ha0e enforced payment b,t for the law for thelimitation of s,its( In any of these cases$ s,ch an agreement is a contract(

    Explanation (- othing in this section shall affect the 0alidity$ as between the donorand donee$ of any gift act,ally made(

    Explanation '(- n agreement to which the consent of the promisor is freely gi0en isnot 0oid merely beca,se the consideration is inade ,ate; b,t the inade ,acy of theconsideration may be ta3en into acco,nt by the #o,rt in determining the ,estionwhether the consent of the promisor was freely gi0en(

    Ill,strations

    &a' A pro/i*)*, or no con*id)ration, to +i ) to ; R*. 1, .Thi* i* a oid

    a+r))/)nt. & ' A, or nat ra o ) and a )ction, pro/i*)* to +i ) hi* *on, ;, R*. 1, . Ap t* hi* pro/i*) to ; into -ritin+ and r)+i*t)r* it. Thi* i* a contract.

    &c' A ind* ;

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    in th) ordinar0 tri na *, or -hich i/it* th) ti/) -ithin -hich h) /a0th * )n orc) i* ri+ht*> or

    & ' -hich )?tin+ i*h)* th) ri+ht* o an0 part0 th)r)to, or di*char+)* an0 part0th)r)to ro/ an0 ia i it0, nd)r or in r)*p)ct o an0 contract on th))?pir0 o a *p)ci i)d p)riod *o a* to r)*trict an0 part0 ro/ )n orcin+ hi*

    ri+ht*, i* oid to that )?t)nt.

    :a in+ o contract o r) )r to ar itration di*p t) that /a0 ari*).6E?c)ption1.6Thi* *)ction *ha not r)nd)r i )+a a contract, 0 -hich t-o or /or)p)r*on* a+r)) that an0 di*p t) -hich /a0 ari*) )t-))n th)/ in r)*p)ct oan0 * )ct or c a** o * )ct* *ha ) r) )rr)d to ar itration, and thaton 0 th) a/o nt a-ard)d in * ch ar itration *ha ) r)co )ra ) inr)*p)ct o th) di*p t) *o r) )rr)d.

    : it* arr)d 0 * ch contract*.61 (h)n * ch a contract ha* ))n /ad), a* it /a0 ) ro +ht or it* *p)ci ic p)r or/anc) and i a * it, oth)r thanor * ch *p)ci ic p)r or/anc), or or th) r)co )r0 o th) a/o nt *oa-ard)d, i* ro +ht 0 on) part0 to * ch contract a+ain*t an0 oth)r * ch

    part0, in r)*p)ct o an0 * )ct -hich th)0 ha ) *o a+r))d to r) )r, th))?i*t)nc) o * ch contract *ha ) a ar to th) * it. :a in+ o contract to r) )r @ )*tion* that ha ) a r)ad0 ari*)n.6

    E?c)ption 2.6 Nor *ha thi* *)ction r)nd)r, i )+a an0 contract in -ritin+,0 -hich t-o or /or) p)r*on* a+r)) to r) )r to ar itration an0 @ )*tion)t-))n th)/ -hich ha* a r)ad0 ari*)n, or a )ct an0 pro i*ion o an0 a-in orc) or th) ti/) )in+ a* to r) )r)nc)* to ar itration.

    '

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    or other ,ncertain e0ent on which any wager is made( Exception in fa0o,r of certain priFes for horse-racing(-"his section shall not be deemed to

    render ,nlawf,l a s,bscription or contrib,tion$ or agreement to s,bscribe or contrib,te$made or entered into for or toward any plate$ priFe or s,m of money$ of the 0al,e or amo,ntof fi0e h,ndred r,pees or ,pwards$ to be awarded to the winner or winners of any horse-

    race( Section '

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    9': it m,st be made at a proper time and place$ and ,nder s,ch circ,mstances that the person to whom it is made may ha0e a reasonable opport,nity of ascertaining that the person by whom it is made is able and willing there and then to do the whole of whathe is bo,nd by his promise to do

    92: if the offer is an offer to deli0er anything to the promisee$ the promisee m,st ha0e a

    reasonable opport,nity of seeing that the thing offered is the thing which the promisoris bo,nd by his promise to deli0er( An offer to one of se0eral >oint promisees has thesame legal conse ,ences as an offer to all of them$

    Ill,stration A contracts to deli0er to 7 at his wareho,se$ on the st Barch$ %&2$ == bales of cotton of a

    partic,lar ,ality( In order to ma3e an offer of a performance with the effect stated in thissection$ A m,st bring the cotton to 7Ds wareho,se$ on the appointed day$ ,nder s,chcirc,mstances that 7 may ha0e a reasonable opport,nity of satisfying himself that the thingoffered is cotton of the ,ality contracted for$ and that there are == bales(

    2

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    p)r*ona 0.4 - Effect of accepting performance from third person ! When a promisee accepts performance of the promise from a third person$ he cannot

    afterwards enforce it against the promisor(4'- e0ol,tion of >oint liabilities !

    When two or more persons ha0e made a >oint promise$ then$ ,nless a contrary intentionappears by the contract$ all s,ch persons$ d,ring their >oint li0es$ and$ after the death of anyof them$ his representati0e >ointly with the s,r0i0or or s,r0i0ors$ and$ after the death of thelast s,r0i0or$ the representati0es of all >ointly$ m,st f,lfill the promise(

    42- Any one of >oint promisors may be compelled to perform ! When two or; more persons ma3e a >oint promise$ the promisee may$ in the absence of

    express agreement to the contrary$ compel any )*one or more. of s,ch >oint promisors$ to perform the whole of the promise(

    Each promisor may compel contrib,tion( Each of two or more >oint promisors may compele0ery other >oint promisor to contrib,te e ,ally with himself to the performance of the

    promise$ ,nless a contrary intention appears from the contract(

    Sharing of loss by defa,lt in contrib,tion(-If any one of two or more >oint promisors ma3esdefa,lt in s,ch contrib,tion$ the remaining >oint promisors m,st bear the loss arising froms,ch defa,lt in e ,al shares(

    Explanation(-/othing in this section shall pre0ent a s,rety from reco0ering from his principal; payments made by the s,rety on behalf of the principal$ or entitle the principal toreco0er anything from the s,rety on acco,nt of payments made by the principal(

    Ill,strations

    &a' A, ; and C oint 0 pro/i*) to pa0 D , r p))*. D /a0 co/p) )ith)r Aor ; or C to pa0 hi/ , r p))*.

    & ' A, ; and C oint 0 pro/i*) to pa0 D th) * / o , r p))*. C i*co/p) )d to pa0 th) -ho ). A i* in*o )nt, t hi* a**)t* ar) * ici)nt to

    pa0 on)6ha o hi* d) t*. C i* )ntit )d to r)c)i ) 5 r p))* ro/ Aoint promisor ! Where two or more persons ha0e made a >oint promise$ a release of one of s,ch >oint

    promisors by the promisee does not discharge the other >oint promisor or >oint promisors ;neither does it free the >oint promisors so released from responsibility to the other >oint

    promisor or >oint promisors(46- e0ol,tion of >oint rights ! When a person has made a promise to two or more persons >ointly$ then$ ,nless a contrary

    intention appears from the contract$ the right to claim performance rests$ as between himand them$ with them d,ring their >oint li0es$ and$ after the death of any of them$ with therepresentati0e of s,ch deceased person( +ointly with the s,r0i0or or s,r0i0ors$ and$ after thedeath of the last s,r0i0or$ with the representati0es of all >ointly(

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    Ill,stration A$ in consideration of 6$=== r,pees$ lent to him by 7 and #$ promises 7 and # >ointly to

    repay them that s,m with interest on a day specified( 7 dies( "he right to claim performancerests with 7Ds representati0e >ointly with # d,ring #Ds life$ and after the death of # with therepresentati0es of 7 and # >ointly(

    Ti/) and p ac) or p)r or/anc)48- "ime for performance of promise$ when no application is to be made and no time isspecified !

    Where$ by the contract$ a promisor is to perform his promise witho,t application by the promisee$ and no time for performance is specified$ the engagement m,st be performedwithin a reasonable time(

    Explanation(- "he ,estion 5what is a reasonable time5 is$ in each partic,lar case$ a ,estionof fact(

    4&- "ime and place for performance of promise$ where time is specified and no application to bemade !

    When promise is to be performed on a certain day$ and the promisor has ,nderta3en to

    perform it witho,t application by the promisee$ the promisor may perform it at any timed,ring the ,s,al ho,rs of b,siness on s,ch day and at the place at which the promise o,ght to be performed( Ill,stration A promises to deli0er goods at 7Ds wareho,se on the first +an,ary( Gn that day A brings the

    goods to 7Ds wareho,se$ b,t after the ,s,al ho,r for closing it$ and they are not recei0ed( Ahas not performed his promise(

    4%- Application for performance on certain day to be at proper time and place ! When a promise is to be performed on a certain day$ and the promisor has not ,nderta3en to

    perform it witho,t application by the promisee$ it is the d,ty of the$ promisee to apply for performance at a proper place and within the ,s,al ho,rs of b,siness(

    Explanation(-"he ,estion 5what is a proper time and place(5 is$ in each partic,lar case$ a,estion of fact(4,te to 7 on a fixed day( A m,st apply to 7 to

    appoint a reasonable place for the p,rpose of recei0ing it$ and m,st deli0er it to him at s,ch place( Performance in manner or at time prescribed or sanctioned by promisee(

    6=- Performance in manner or at time prescribed or sanctioned by promisee ! "he performance of any promise may be made in any manner$ or at any time which the

    promisee prescribes or sanctions( Ill,strations

    &a' ; o-)* A 2, r p))*. A d)*ir)* ; to pa0 th) a/o nt to A

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    Ill,strations A and 7 contract that 7 shall exec,te certain wor3 for A for a tho,sand r,pees( 7 is ready

    and willing to exec,te the wor3 accordingly$ b,t A pre0ents him from doing so( "hecontract is 0oidable at the option of 7; and$ if he elects to rescind it$ he is entitled to reco0erfrom A compensation for any loss which he has inc,rred by its non-performance(

    64- Effect of defa,lt as to that promise which sho,ld be first performed$ in contract consisting ofreciprocal promises ! When a contract consists of reciprocal promises$ s,ch that one of them cannot be performed$

    or that its performance cannot be claimed till the other has been performed$ and the promisor of the promise last mentioned fails to perform it$ s,ch promisor cannot claim the performance of the reciprocal promise$ and m,st ma3e compensation to the other party tothe contract for any loss which s,ch other party may s,stain by the non-performance of thecontract(

    Ill,strations

    &a' A hir)* ;

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    the promisee cannot claim compensation for any loss occasioned by the non-performance ofthe promise at the time agreed$ ,nless$ at the time of s,ch acceptance he gi0es notice to the

    promisor of his intention to do so( )68- Agreement to do impossible act( An agreement to do an act impossible in itself is 0oid(

    #ontract to do act afterwards becoming impossible or ,nlawf,l !

    A contract to do an act which$ after the contract is made$ becomes impossible$ or$ by reasonof some e0ent which the Promisor co,ld not pre0ent$ ,nlawf,l$ becomes 0oid when the act becomes impossible or ,nlawf,l(')

    #ompensation for loss thro,gh non-performance of act 3nown to be impossible or,nlawf,l(-Where one person has promised to do something which he 3new$ or$ withreasonable diligence$ might ha0e 3nown$ and which the promisee did not 3now$ to beimpossible or ,nlawf,l$ s,ch promisor m,st ma3e compensation to s,ch promisee for anyloss which s,ch promisee s,stains thro,gh the non-performance of the promise(

    Ill,strations &a' A a+r))* -ith ; to di*co )r tr)a* r) 0 /a+ic. Th) a+r))/)nt i* oid,

    & ' A and ; contract to /arr0 )ach oth)r. ;) or) th) ti/) i?)d or th)

    /arria+), A +o)* /ad. Th) contract )co/)* oid.

    &c' A contract* to /arr0 ;, )in+ a r)ad0 /arri)d to C, and )in+ or idd)n0 th) a- to (hich h) i* * )ct to "ractic) po 0+a/0, A / *t /a3)co/p)n*ation to ; or th) o** ca *)d to h)r 0 th) non6p)r or/anc) o hi*pro/i*).

    &d' A contract* to ta3) in car+o or ; at a or)i+n port. A

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    Appropriation o pa0/)nt*6

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    -ho ) d) t, 2, r p))* paid at th) ti/) and p ac) at -hich th) 5,r p))* -)r) pa0a ). Th) -ho ) d) t i* di*char+)d.

    &c' A o-)* ; 5, r p))*. C pa0* to ; 1, r p))*, and ; acc)pt* th)/, in

    *ati* action o hi* c ai/ on A. Thi* pa0/)nt i* a di*char+) o th) -ho )c ai/.

    &d' A o-)* ;, nd)r. a contract, a * / o /on)0, th) a/o nt o -hich ha* not))n a*c)rtain)d. A< -itho t a*c)rtainin+ th) a/o nt, +i )* to ;, and ;, in

    *ati* action th)r)o , acc)pt*, th) * / o 2, r p))*. Thi* i* a di*char+) oth) -ho ) d) t, -hat) )r /a0 ) it* a/o nt.

    &)' A o-)* ; 2, r p))*, and i* a *o ind) t)d to oth)r cr)ditor*. A /a3)* anarran+)/)nt -ith hi* cr)ditor*, inc din+ ;, to pa0 th)/ a[co/po*ition! o )i+ht anna* in th) r p)) pon th)ir r)*p)cti )

    d)/and*. "a0/)nt to ; o 1, r p))* i* a di*char+) o ;

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    and s,b>ect to the same r,les$ as apply to the comm,nication or re0ocation of a proposal(8&- Effect of neglect of promisee to afford promisor reasonable facilities for performance ! If any promisee neglects or ref,ses to afford the promisor reasonable facilities for the

    performance of his promise$ the promisor is exc,sed by s,ch neglect or ref,sal as to anynon-performance ca,sed thereby(

    Ill,stration A contracts with 7 to repair 7Ds ho,se( 7 neglects or ref,ses to point o,t to A the places in which his ho,se re ,ires repair( A is exc,sed for the nonperformance of the contract if it is ca,sed by s,ch neglector ref,sal(CHA"TER .8%- G? #ER"AI/ RE A"IG/S RESEB7 I/ "HGSE #REA"E 7J #G/"RA#" #laim for necessaries s,pplied to person incapable of contracting$ or on his acco,nt( If a

    person$ incapable of entering into a contract$ or any one whom he is legally bo,nd tos,pport$ is s,pplied by another$ person with necessaries s,ited to his condition in life$ the

    person who has f,rnished s,ch s,pplies is entitled to be reimb,rsed from the property ofs,ch incapable person(

    Ill,strations &a' A * pp i)* ;, a natic, -ith n)c)**ari)* * ita ) to hi* condition in i ). Ai* )ntit )d to ) r)i/ r*)d ro/ ;

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    coercion$ m,st repay or ret,rn it( Ill,strations

    &a' A and ; oint 0 o-) 1 r p))* to C. A a on) pa0* th) a/o nt to C, and ;,

    not 3no-in+ thi* act, pa0* 1 r p))* o )r a+ain to C. C i* o nd tor)pa0 th) a/o nt to ;.

    & ' A rai -a0 co/pan0 r) *)* to d) i )r p c)rtain +ood* to th) con*i+n)),)?c)pt pon th) pa0/)nt o an i )+a char+) or carria+). Th) con*i+n))

    pa0* th) * / char+)d in ord)r to o tain th) +ood*. H) i* )ntit )d tor)co )r *o / ch o th) char+) a* -a* i )+a 0 )?c)**i ).

    CHA"TER IOF THE CON:EG ENCE: OF ;REACH OF CONTRACT

    &2- #ompensation for loss or damage ca,sed by breach of contract ! When a contract has been bro3en$ the party who s,ffers by s,ch breach is entitled to

    recei0e$ from the party who has bro3en the contract$ compensation for any loss or damageca,sed to him thereby$ which nat,rally arose in the ,s,al co,rse of things from s,ch

    breach$ or which the parties 3new$ when they made the contract$ to be li3ely to res,lt from

    the breach of it( S,ch compensation is not to be gi0en for any remote and indirect loss or damage s,stained by reason of the breach(

    #ompensation for fail,re to discharge obligation resembling those created by contract -When an obligation resembling those created by contract has been inc,rred and has not

    been discharged$ any person in>,red by the fail,re to discharge it is entitled to recei0e thesame compensation from the party in defa,lt$ as if s,ch person had contracted to dischargeit and had bro3en his contract(

    Explanation - In estimating the loss or damage arising from a breach of contract$ the meanswhich existed of remedying the incon0enience ca,sed by the non-performance of thecontract m,st be ta3en into acco,nt(

    Ill,strations

    &a' A contract* to *) and d) i )r 5 /a nd* o *a tp)t)r to ;, at a c)rtainpric) to ) paid on d) i )r0. A r)a3* hi* pro/i*). ; i* )ntit )d to r)c)i )ro/ A, 0 -a0 o co/p)n*ation, th) * /, i an0, 0 -hich th) contractpric) a * *hort o th) pric) or -hich ; /i+ht ha ) o tain)d 5 /a nd*o *a tp)t)r o i3) @ a it0 at th) ti/) -h)n th) *a tp)t)r o +ht to ha )))n d) i )r)d.

    & ' A hir)* ;

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    that -hich ; can o tain or th) ric) at th) ti/) -h)n A in or/* ; that h)-i not acc)pt it.

    A contract* to 0 ;

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    cap*. ; i* )ntit )d to r)c)i ) ro/ A, 0 -a0 o co/p)n*ation, th)di )r)nc) )t-))n th) contract pric) o th) c oth and it* /ar3)t pric) atth) ti/) o d) i )r0, t not th) pro it* -hich h) )?p)ct)d to o tain 0/a3in+ cap*, nor th) )?p)n*)* -hich h) ha* ))n p t to in /a3in+pr)paration or th) /an act r).

    A, a *hip6o-n)r, Contract* -ith ; to con )0 hi/ ro/ Ca c tta to:0dn)0 in A

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    to which the promise to indemnify applies 9': all costs which he may be compelled to pay in any s,ch s,it if$ in bringing or

    defending it$ he did not contra0ene the orders of the promisor$ and acted as it wo,ldha0e been pr,dent for him to act in the absence of any contract of indemnity$ or ifthe promisor a,thoriFed him to bring or defend the s,it;

    92: all s,ms which he may ha0e paid ,nder the terms of any compromise of any s,chs,it$ if the compromise was not contrary to the orders of the promisor$ and was onewhich it wo,ld ha0e been pr,dent for the promisee to ma3e in the absence of anycontract of indemnity$ or if the promisor a,thoriFed him to compromise the s,it(

    '8- 5#ontract of g,arantee5$ 5s,rety5$ principal debtor5 and 5creditor5 ! A 5contract of g,arantee5 is a contract to perform the promise$ or discharge the liability$ of

    a third person in case of his defa,lt( "he person who gi0es the g,arantee is called the5s,rety5; the person in respect of whose defa,lt the g,arantee is gi0en is called the5principal debtor 5$ and the person to whom the g,arantee is gi0en is called the 5creditor5(A g,arantee may be either oral or written(

    '&- #onsideration for g,arantee !

    Anything done$ or any promise made$ for the benefit of the principal debtor$ may be as,fficient consideration to the s,rety for gi0ing the g,arantee( Ill,strations

    &a' ; r)@ )*t* A to *) and d) i )r to hi/ +ood* on cr)dit. A a+r))* to do *o,pro id)d C -i + arant)) th) pa0/)nt o th) pric) o th) +ood*. Cpro/i*)* to + arant)) th) pa0/)nt in con*id)ration o A

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    a o ) th) a ) o po nd 1 , and C pa0* ; or it. A t)r-ard* ; * pp i)*C -ith t)a to th) a ) o po nd 2 . C ai * to pa0. Th) + arant)) +i )n0 A -a* a contin in+ + arant)), and h) i* accordin+ 0 ia ) to ; to th))?t)nt o po nd 1 .

    &c' A + arant))* pa0/)nt to ; o th) pric) o i ) *ac3* o o r to )

    d) i )r)d 0 ; to C and to ) paid or in a /onth. ; d) i )r* i ) *ac3* toC. C pa0* or th)/. A t)r-ard* ; d) i )r* o r *ac3* to C, -hich C do)*riot pa0 or. Th) + arant)) +i )n 0 A -a* not a contin in+ + arant)),and accordin+ 0 h) i* not ia ) or th) pric) o th) o r *ac3*.

    2=- Re0ocation of contin,ing g,arantee ! A contin,ing g,arantee may at any time be re0o3ed by the s,rety$ as to f,t,re transactions$

    by notice to the creditor( Ill,strations

    &a' A, in con*id)ration o ;oint and se0eral promissory note to #( A ma3es it$ infact$ as s,rety for 7$

    and # 3nows this at the time when the note is made( "he fact that A$ to the 3nowledge of#$ made the note as s,rety for 7$ is no answer to a s,it by # against A ,pon the note(

    22- ischarge of s,rety by 0ariance in terms of contract ! Any 0ariance$ made witho,t the s,retyDs consent$ in the terms of the contract between the

    principal *debtor. and the creditor$ discharges the s,rety as to transactions s,bse ,ent tothe 0ariance(

    Ill,strations &a' A )co/)* * r)t0 to C or ;

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    A contract between the creditor and the principal debtor$ by which the creditor ma3es acomposition with$ or promises to gi0e time to$ or not to s,e$ the principal debtor$discharges the s,rety$ ,nless the s,rety assents to s,ch contract(

    28- ((((((((((((((((((( S,rety not discharged when agreement made with third person to gi0e time to principal

    debtor( Where a contract to gi0e time to the principal debtor is made by the creditor with athird person$ and not with the principal debtor$ the s,rety is not discharged( Ill,stration #$ the holder of an o0erd,e bill of exchange drawn by A as s,rety for 7$ and accepted by

    7$ contracts with B to gi0e time to 7( A is not discharged(2&- #reditorDs forbearance to s,e does not discharge s,rety ! Bere forbearance on the part of the creditor to s,e the principal debtor or to enforce any

    other remedy against him does not$ in the absence of any pro0ision in the g,arantee to thecontrary$ discharge the s,rety(

    Ill,stration 7 owes to # a debt g,aranteed by A( "he debt becomes payable( # does not s,e 7 for a

    year after the debt has become payable( A is not discharged from his s,rety ship(2%- Release of one co-s,rety does not discharge others ! Where there are co-s,reties$ a release by the creditor of one of them does not discharge the

    others; neither does it free the s,rety so released from his responsibility to the others,reties (

    2

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    4 - S,retyDs right to benefit of creditorDs sec,rities ! A s,rety is entitled to the benefit of e0ery sec,rity which the creditor has against the

    principal debtor at the time when the contract of s,rety ship is entered into$ whether thes,rety 3nows of the existence of s,ch sec,rity or not; and$ if the creditor loses$ or$ witho,tthe consent of the s,rety$ parts with s,ch sec,rity$ the s,rety is discharged to the extent of

    the 0al,e of the sec,rity( Ill,strations

    &a' C ad anc)* to ;, hi* t)nant, 2, r p))* on th) + arant)) o A. C ha*a *o a rth)r *)c rit0 or th) 2, r p))* 0 a /ort+a+) o ;

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    wrongf,lly( Ill,strations

    &a' ; i* ind) t)d to C, and A i* * r)t0 or th) d) t. C d)/and* pa0/)ntro/ A, and on hi* r) *a * )* hi/ or th) a/o nt. A d) )nd* th) * it,ha in+ r)a*ona ) +ro nd* or doin+ *o, t i* co/p) )d to pa0 th)

    a/o nt o th) d) t -ith co*t*. H) can r)co )r ro/ ; th) a/o nt paid0 hi/ or co*t*, a* -) a* th) principa d) t.

    & ' C )nd* ; a * / o /on)0, and A, at th) r)@ )*t o ;, acc)pt* a i o)?chan+) dra-n 0 ; pon A to *)c r) th) a/o nt. C, th) ho d)r o th)i , d)/and* pa0/)nt o it ro/ A, and, on A

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    A contract of bailment is a0oidable at the option of the bailor$ if the bailee does any adwith regard to the goods bailed$ inconsistent with the conditions of the bailment(

    Ill,stration

    A lets to 7$ for hire$ a horse for his own riding( 7 dri0es the horse in his carriage( "his is$

    at the Doption of A$ a termination of the bailment(64- iability of bailee ma3ing ,na,thoriFed ,se of goods bailed ! If the bailee ma3es any ,se of the goods bailed$ which is not according to the conditions of

    the bailment$ he is liable to ma3e compensation to the bailor for any damage arising to thegoods from or d,ring s,ch ,se of them(

    Ill,strations

    &a' A )nd* a hor*) to ; or hi* o-n ridin+ on 0. ; a o-* C, a /)/ )r o hi*a/i 0, to rid) th) hor*). C rid)* -ith car), t th) hor*) accid)nta 0a * and i* in r)d. ; i* ia ) to /a3) co/p)n*ation to A or th) in r0don) to th) hor*).

    & ' A hir)* a hor*) in Ca c tta ro/ ; )?pr)** 0 to /arch to ;)nar)*. A

    rid)* -ith c ) car), t /arch)* to C ttac3 in*t)ad. Th) hor*)accid)nta 0 a * and i* in r)d. A i* ia ) to /a3) co/p)n*ation to ;or th) in r0 to th) hor*).

    66- Effect of mixt,re$ with bailorDs consent$ of his goods with baileeDs( If the bailee$ with theconsent of the bailor$ mixes the goods of the bailor with his own goods$ the bailor and the

    bailee shall ha0e an interest$ in proportion to their respecti0e shares$ in the mixt,re th,s prod,ced(

    68- Effect of mixt,re witho,t bailorDs consent$ when the goods can be separated ! If the bailee$ witho,t the consent of the bailor$ mixes the goods of the bailor with his own

    goods$ and the goods can be separated or di0ided$ the property in the goods re-mains in the parties respecti0ely; b,t the bailee is bo,nd to bear the expense of separation or di0ision$

    and any damage arising from the mixt,re( Ill,stration A bails == bales of cotton mar3ed with a partic,lar mar3 to 7( 7$ witho,t ADs consent$

    mixes the == bales with other bales of his own$ bearing a different mar3 1 A is entitled toha0e his == bales ret,rned$ and 7 is bo,nd to bear all the expense inc,rred in theseparation of the bales$ and any other incidental damage(

    6&- Effect of mixt,re$ witho,t bailorDs consent$ when the goods cannot be separated ! If the bailee$ witho,t the consent of the bailor$ mixes the goods of the bailor with his own

    goods$ in s,ch a manner that it is impossible to separate the goods bailed from the othergoods and deli0er them bac3$ the bailor is entitled to be compensated by the bailee for theloss of the goods(

    Ill,stration A bails a barrel of #ape flo,r worth Rs( 46 to 7( 7$ witho,t ADs consent$ mixes the flo,r

    with co,ntry flo,r of his own$ worth only Rs( '6 a barrel( 7 m,st compensate A for theloss of his flo,r(

    6%- Repayment$ by bailor$ of necessary expenses ! Where$ by the conditions of the bailment$ the goods are to$ be 3ept or to be carried$ or to

    ha0e wor3 done ,pon them by the bailee for the bailor$ and the bailee is to recei0e norem,neration$ the bailor shall repay to the bailee the necessary expenses inc,rred by him

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    for the p,rpose of the bailment(6oint owners( If se0eral >oint owners of goods bail them$ the bailee

    may deli0er them bac3 to$ or according to the directions of$ one >oint owner witho,t theconsent of all$ in the absence of any agreement to the contrary(

    88- 7ailee not responsible on re-deli0ery to bailor witho,t title ! If the bailor has no title to the goods$ and the bailee$ in good faith$ deli0ers them bac3 to$

    or according to the directions of$ the bailor$ the bailee is not responsible to the owner inrespect of s,ch deli0ery(

    8&- Right of third person claiming goods bailed ! If a person$ other than the bailor$ claims goods bailed$ he may apply to the #o,rt to stop

    the deli0ery of the goods to the bailor$ and to decide the title to the goods(8%- Right of finder of goods; may s,e for specific reward offered ! "he finder of goods has no right to s,e the owner for compensation for tro,ble and

    expense 0ol,ntarily inc,rred by him to preser0e the goods and to find o,t the owner; b,the may retain the goods against the owner ,ntil he recei0es s,ch compensation; and$ wherethe owner has offered a specific reward for the ret,rn of goods lost$ the finder may s,e for

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    s,ch reward$ and may retain the goods ,ntil he recei0es it(8ect of sale is lost$ if the owner cannot with

    reasonable diligence be fo,nd$ or if he ref,ses$ ,pon demand$ to pay the lawf,l charges ofthe finder$ the finder may sell it-

    9 : when the thing is in danger of perishing or of losing the greater part of its 0al,e$ or$ 9': when the lawf,l charges of the finder$ in respect of the thing fo,nd$ amo,nt to two-thirds of its 0al,e(

    &=- 7aileeDs partic,lar line ! Where the bailee has$ in accordance with the p,rpose of the bailment$ rendered any ser0ice

    in0ol0ing the exercise of labo,r or s3ill in respect of the goods bailed$ he has$ in theabsence of a contract to the contrary$ a right to retain s,ch goods ,ntil he recei0es d,erem,neration for the ser0ices he has rendered in respect of them(

    Ill,strations

    &a' A d) i )r* a ro +h dia/ond to ;, a )-) )r, to ) c t and po i*h)d,

    -hich i* accordin+ 0 don). ; i* )ntit )d to r)tain th) *ton) ti h) i* paid

    or th) *)r ic)* h) ha* r)nd)r)d.

    & ' A +i )*, c oth to ;, a tai or, to /a3) into a coat. ; pro/i*)* A to d) i )r

    th) coat a* *oon a* it i* ini*h)d, and to +i ) a thr)) /onth*< cr)dit or th)pric). ; i* not )ntit )d to r)tain th) coat nti h) i* paid.

    & - eneral line of ban3ers$ factors$ wharfingers$ attorneys and policy bro3ers ! 7an3ers$ factors$ wharfingers$ attorneys of a High #o,rt and policy-bro3ers may$ in the

    absence of a contract to the contrary$ retain as a sec,rity for a general balance of acco,nt$any goods bailed to them ; b,t no other persons ha0e a right to retain$ as a sec,rity for s,ch

    balance$ goods bailed to them$ ,nless there is an express contract to that effect( 7ailments of Pledges&'- 5Pledge5 5pawnor5 and 5pawnee5 defined !

    "he bailment of goods as sec,rity for payment of a debt or performance of a promise iscalled 5pledge5( "he bailor is in this case called the 5pawnor5( "he bailee is called the5pawnee5(

    &2- PawneeDs right of retainer ! "he pawnee may retain the goods pledged$ not only for payment of the debt or the

    performance of the promise$ b,t for the interest of the debt$ and all necessary expensesinc,rred by him in respect of the possession or for the preser0ation of the goods pledged(

    &4- Pawnee not to retain for debt or promise other than that for which goods pledged(Pres,mption in case of s,bse ,ent ad0ances !

    "he pawnee shall not$ in the absence of a contract to that effect$ retain the goods pledgedfor any debt or promise other than the debt or promise for which they are pledged; b,ts,ch contract$ in the absence of anything to the contrary$ shall be pres,med in regard tos,bse ,ent ad0ances made by the pawnee(

    &6 PawneeDs right as to extraordinary expenses inc,rred( "he pawnee is entitled to recei0e

    from the pawnor extraordinary expenses inc,rred by him for the preser0ation of the goods pledged(

    &8- PawneeDs right where pawnor ma3es defa,lt - If the pawnor ma3es defa,lt in payment of the debt$ or performance$ at the stip,lated time

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    An 5agent5 is a person employed to do any act for another or to represent another indealings with third persons( "he person for whom s,ch act is done$ or who is sorepresented$ is called the 5principal5(

    %2- Who may employ agent ! Any person who is of the age of ma>ority according to the law to which he is s,b>ect$ and

    who is of so,nd mind$ may employ an agent(%4- Who may be an agent ! As between the principal and third persons any person may become an agent$ b,t no

    person who is not of the age of ma>ority and of so,nd mind can become an agent$ so as to be responsible to his principal according to the pro0isions in that behalf herein contained(

    %6- #onsideration not necessary ! /o consideration is necessary to create an agency$%8- AgentDs a,thority may be expressed or implied ! "he a,thority of an agent may be expressed or implied(%&- efinitions of express and implied a,thority ! An a,thority is said to be express when it is gi0en by words spo3en or written( An

    a,thority is said to be implied when it is to be inferred from the circ,mstances of the case;and things spo3en or written$ or the ordinary co,rse of dealing$ may be acco,ntedcirc,mstances of the case(

    Ill,stration A owns a shop in Serampore$ li0ing himself in #alc,tta$ and 0isiting the shop

    occasionally( "he shop is managed by 7$ and he Is in the habit of ordering goods from # inthe name( of A for the p,rposes of the shop$ and of paying for them o,t of ADs f,nds withADs 3nowledge( 7 has an implied a,thority from A to order goods from # in the name of Afor the p,rposes of the shop(

    %%- Extent of agentDs a,thority ! An agent ha0ing an a,thority to do an act has a,thority to do e0ery lawf,l thing which is

    necessary in order to do s,ch act(

    An agent ha0ing an a,thority to carry on a b,siness has a,thority to do e0ery lawf,l thingnecessary for the p,rpose$ or ,s,ally done in the co,rse$ of cond,cting s,ch b,siness(

    Ill,strations

    &a' A i* )/p o0)d 0 ;, r)*idin+ in #ondon, to r)co )r at ;o/ a0 a d) t d )

    to ;. A /a0 adopt an0 )+a proc)** n)c)**ar0 or th) p rpo*) or)co )rin+ th) d) t, and /a0 +i ) a a id di*char+) or th) *a/).

    & ' A con*tit t)* ; hi* a+)nt to carr0 on hi* *in)** o a *hip6 i d)r. ;

    /a0 p rcha*) ti/ )r and oth)r /at)ria *, and hir) -or3/)n, or th)p rpo*) o carr0in+ on th) *in)**.

    %

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    th)0 -i not )ar th) o rn)0 to C ttac3 -itho t *poi in+.S,b-Agents

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    o*t. ; i* not, t th) * r )0or i*, r)*pon*i ) to A.

    & ' A con*i+n* +ood* to ;, a /)rchant, or *a ). ;, in d ) co r*), )/p o0* ana ction))r in +ood cr)dit to *) th) +ood* o A, and a o-* th) a ction))rto r)c)i ) th) proc))d* o th) *a ). Th) a ction))r a t)r-ard* )co/)*in*o )nt -itho t ha in+ acco nt)d or th) proc))d*. ; i* not r)*pon*i )

    to A or th) proc))d*.Ratification

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    for the relief of insol0ent debtors('='- "ermination of agency where agent has an interest in s,b>ect-matter ! Where the agent has himself an interest in the property which forms the s,b>ect-matter of

    the agency$ the agency cannot$ in the absence of an express contract$ be terminated to the pre>,dice of s,ch interest(

    Ill,strations

    &a' A +i )* a thorit0 to ; to *) A

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    r)p diat) th) *a ), i h) can *ho- that ; ha* di*hon)*t 0 conc)a )d an0/at)ria act, or that th) *a ) ha* ))n di*ad anta+)o * to hi/.

    & ' A dir)ct* ; to *) A

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    *)r ic)*, and / *t /a3) +ood th) o**.'' - AgentDs line on principalDs property ! In the absence of any contract to the contrary$ an agent is entitled to retain goods$ papers

    and other property$ whether mo0able or immo0able$ of the principal recei0ed by him$ ,ntilthe amo,nt d,e to himself for #ommission$ disb,rsements and ser0ices in respect of the

    same has been paid or acco,nted for to him(PrincipalDs d,ty to agent'''- Agent to be indemnified against conse ,ences of lawf,l acts ! "he employer of an agent is bo,nd to indemnify him against the conse ,ences of all

    lawf,l acts done by s,ch agent in exercise of the a,thority #onferred ,pon him( Ill,strations

    &a' ;, at :in+apor), nd)r in*tr ction* ro/ A o Ca c tta, contract* -ith Cto d) i )r c)rtain +ood* to hi/. A do)* not *)nd th) +ood* to ;, and C* )* ; or r)ach o contract. ; in or/* A o th) * it, and A a thori )*hi/ to d) )nd th) * it. ; d) )nd* th) * it, and i* co/p) )d to pa0da/a+)* and co*t*, and inc r* )?p)n*)*. A i* ia ) to ; or * ch

    da/a+)*, co*t* and )?p)n*)*.

    & ' ;, a ro3)r at Ca c tta, 0 th) ord)r* o A, a /)rchant th)r), contract*-ith C or th) p rcha*) o 1 ca*3* o oi or A. A t)r-ard* A r) *)* tor)c)i ) th) oi , and C * )* ;. ; in or/* A, -ho r)p diat)* th) contracta to+)th)r. ; d) )nd*, t n* cc)** 0, and ha* to pa0 da/a+)* andco*t* and inc r* )?p)n*)*. A i* ia ) to ; or * ch da/a+)*, co*t* and)?p)n*)*.

    ''2- Agent to be indemnified against conse ,ences of acts done in good faith ! Where one person employs another to do an act$ and the agent does the act in good faith$

    the employer is liable to indemnify the agent against the conse ,ences of that act$ tho,ghit ca,se an in>,ry to the rights of third persons(

    Ill,strations

    &a' A, a d)cr))6ho d)r and )ntit )d to )?)c tion o ;

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    & ' ;, th) propri)tor o a n)-*pap)r, p i*h)*, at A,ry ca,sed by principalDs neglect ! "he principal m,st ma3e compensation to his agent in respect of in>,ry ca,sed to s,chagent by the principalDs neglect or want of s3ill(

    Ill,stration A employs 7 as a bric3layer in b,ilding a ho,se$ and p,ts ,p the scaffolding himself( "he

    scaffolding is ,ns3illf,lly p,t ,p$ and 7 is in conse ,ence h,rt( A m,st ma3ecompensation to 7(

    Effect of agency on contracts with third persons''8- Enforcement and conse ,ences of agentDs contracts ! #ontracts entered into thro,gh an agent$ and obligations arising from acts done by an

    agent$ may be enforced in the same manner$ and will ha0e the same legal conse ,ences$ as

    if the contracts had been entered into and the acts done by the principal in person( Ill,strations

    &a' A 0* +ood* ro/ ;, 3no-in+ that h) i* an a+)nt or th)ir *a ), t not3no-in+ -ho i* th) principa . ;

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    obtained by the principal( Ill,strations

    &a' A i* )/p o0)d 0 ; to 0 ro/ C c)rtain +ood*, o -hich C i* th)appar)nt o-n)r, and 0* th)/ accordin+ 0. In th) co r*) o th) tr)at0or th) *a ), A )arn* that th) +ood* r)a 0 ) on+)d to D, t ; i*

    i+norant o that act. ; i* not )ntit )d to *)t6o a d) t o-in+ to hi/ ro/C a+ain*t th) pric) o th) +ood*.

    & ' A i* )/p o0)d 0 ; to 0 ro/ C +ood* o -hich C i* th) appar)nto-n)r. A -a*, ) or) h) -a* *o )/p o0)d, a *)r ant o C, and th)n )arntthat th) +ood* r)a 0 ) on+)d to D, t ; i* i+norant o that act. In *pit)o th) 3no- )d+) o hi* a+)nt, ; /a0 *)t6o a+ain*t th) pric) o th) +ood*a d) t o-in+ to hi/ ro/ C.

    '2=- Agent cannot personally enforce$ nor be bo,nd by$ contracts on behalf of principal ! In the absence of any contract to that effect$ an agent cannot personally enforce contracts

    entered into by him on behalf of his principal$ nor is he personally bo,nd by them( Pres,mption of contract to contrary( S,ch a contract shall be pres,med to exist in the

    following cases1 9 : where the contract is made by an agent for the sale or p,rchase of goods for amerchant resident abroad;

    9': where the agent does not disclose the name of his principal92: where the principal$ tho,gh disclosed$ cannot be s,ed(

    '2 - Rights of parties to a contract made by agent not disclosed ! If an agent ma3es a contract with a person who neither 3nows$ nor has reason to s,spect$

    that he is an agent$ his principal may re ,ire the performance of the contract ; b,t the othercontracting party has$ as against the principal$ the same rights as he wo,ld ha0e had asagainst the agent if the agent had been principal(

    If the principal discloses himself before the contract is completed$ the other contracting party may ref,se to f,lfill the contract$ if he can show that$ if he had 3nown who was the principal in the contract$ or if he had 3nown that the agent( was not a principal$ he wo,ldnot ha0e entered into the contract(

    '2'- Performance of contract with agent s,pposed to be principal ! Where one man ma3es a contract with another$ neither 3nowing nor ha0ing reasonable

    gro,nd to s,spect that the other is an agent$ the principal$ if he re ,ires the performance ofthe contract$ can only obtain s,ch performance s,b>ect to the rights and obligationss,bsisting between the agent and the other party to the contract(

    Ill,stration A$ who owes 6== r,pees to 7$ sells $=== r,peesD worth of rice to 7( A is acting as agent

    for # in the transaction$ b,t 7 has no 3nowledge nor reasonable gro,nd of s,spicion thats,ch is the case( # cannot compel 7 to ta3e the rice witho,t allowing him to set-off ADsdebt(

    '22- Right of person dealing with agent personally liable ! 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( Ill,stration A enters into a contract with 7 to sell him == bales of cotton$ and afterwards disco0ers

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    that 7 was acting as agent for #( A may s,e either 7 or #$ or both$ for the price of thecotton(

    '24- #onse ,ence of ind,cing agent or principal to act on belief that principal or agent will beheld excl,si0ely liable !

    When a person who has made a contract with an agent ind,ces the agent to act ,pon the

    belief that the principal only will be held liable$ or ind,ces the principal to act ,pon the belief that the agent only will be held liable$ he cannot afterwards hold liable the agent or principal respecti0ely(

    '26- iability of pretended agent ! A person ,ntr,ly representing himself to be the a,thoriFed agent of another$ and thereby

    ind,cing a third person to deal with him as s,ch agent$ is liable$ if his alleged employerdoes not ratify his acts$ to ma3e compensation to the other in respect of any loss or damagewhich he has inc,rred by so dealing(

    '28- Person falsely contracting as agent not entitled to performance ! A person$ with whom a contract has been entered into in the character of agent$ is not

    entitled to re ,ire the performance of it$ if he was in reality acting$ not as agent$ b,t on his

    own acco,nt('2&- iability of principal ind,cing belief that agentDs ,na,thorised acts were a,thoriFed ! When an agent has$ witho,t a,thority$ done acts or inc,rred obligations to third persons on

    behalf of his principal$ the principal is bo,nd by s,ch acts or obligations$ if he has by hiswords or cond,ct ind,ced s,ch third persons to belie0e that s,ch acts and obligations werewithin the scope of the agentDs a,thority(

    Ill,strations

    &a' A con*i+n* +ood* to ; or *a ), and +i )* hi/ in*tr ction* not to *)nd)r a i?)d pric). C, )in+ i+norant o ;

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    of < 4:$ s( 2 and Sch(II(