Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
Section 230 of the Indian Contract Act, 1872 deals with agent cannot personally enforce, nor be bound by, contracts on behalf of principal. n 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 bound by them. The Act came into force on 01 Sep 1872.
n 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 bound by them.
Presumption of contract to contrary—Such a contract shall be presumed to exist in the following cases:—
(1) where the contract is made by an agent for the sale or purchase of goods for a merchant resident abroad;
(2) where the agent does not disclose the name of his principal;
(3) where the principal, though disclosed, cannot be sued.
Section 230, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Tristar Consultants v. VCustomer Services India Pvt. Ltd.
Court's Decision & Legal Precedent
Final Order order-1.pdf 2007-03-05 DATE VERIFIED. CRP 365/2006. Delhi HC, Pradeep Nandrajog J. (to be referred to the Reporter). Isolate: Contract Act s.230 — an agent cannot personally enforce or be bound by contracts entered into on behalf of the principal unless he binds himself; a company director is not personally liable to third parties as an ‘agent’ in the conventional s.230 sense. Directors’ third-party liability is in tort (misrepresentation) or by guarantee/indemnity, not contract. Do not invent CPC O7 R11. Do not pad 182 (already filled). Leading HC.
On this section: Contract Act 230: an agent cannot personally enforce or be bound by the principal’s contracts; a company director is not a conventional s.230 agent vis-à-vis third parties (Tristar). Do not invent O7 R11. Do not pad 182.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… It was stated that the Letter of Acceptance and the tender was also floated on behalf of Respondent No.2 and Respondent No.1 acted only as an agent throughout. It was stated that in view of the same and as per Section 230 of the Indian Contract Act Respondent No.1 cannot be sued by the Petitioner and therefore, is entitled to be deleted from the array of parties. - 8. Reliance has been placed upon RITES Vs. Shabbir Ahmed, OMP No.13/2013 and RPP Construction (P) …
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… It was stated that the Letter of Acceptance and the tender was also floated on behalf of Respondent No.2 and Respondent No.1 acted only as an agent throughout. It was stated that in view of the same and as per Section 230 of the Indian Contract Act Respondent No.1 cannot be sued by the Petitioner and therefore, is entitled to be deleted from the array of parties. - 8. Reliance has been placed upon RITES Vs. Shabbir Ahmed, OMP No.13/2013 and RPP Construction (P) …
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… Hence, no intention to bind a non-signatory to the agreement between the parties can be discerned and the reliance placed on Cox and Kings Limited (supra) is respectfully distinguished. In this context, it is relevant to probe into the Section 230 of the Indian Contract Act, 1872, which holds as under: "S.230 Agent cannot personally enforce, nor be bound 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 bound …
Questions about Section 230
What have the courts held on Section 230 of the Indian Contract Act?
Tristar Consultants v. VCustomer Services India Pvt. Ltd. (05 Mar 2007) is the leading judgment on this section among those set out below: Contract Act 230: an agent cannot personally enforce or be bound by the principal’s contracts; a company director is not a conventional s.230 agent vis-à-vis third parties (Tristar). Do not invent O7 R11. Do not pad 182.
How do I find court cases under Section 230 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 230, section 230 Contract Act, section 230 of the Indian Contract Act. People searching for it also type indian contract act section 230. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Tristar Consultants v. VCustomer Services India Pvt. Ltd. (05 Mar 2007).
When did Section 230 of the Indian Contract Act come into force?
Section 230 of the Indian Contract Act, cited as Contract Act 230, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless 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 law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.