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Report No. 13

170. Section 230.-

It is well established that when an agent has made a contract in the subject-matter of which he has a special property, he may, even though he contracted for an avowed principal, sue in his own name. The exception may be added.1

1. 2 Sm LC 378, cited in Pollock & Mulla; Op. Cit., p. 700.

171. It is also established1 that an agent may in his own name sue for the recovery of money paid on his principal's behalf under a mistake of fact, or in respect of a consideration which fails or in consequence of the fraud or other wrongful act of the employee, or otherwise under circumstances rendering the payee liable to repay the money. This rule should also be added.2

1. Pollock & MUll. Op. Cit., para. 700, 701.

2. Vide section 230A, App I.

Indian Contract Act, 1872 Back

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