Trace Your Case

ISSUE:

Under what circumstances and on what pleadings, a director of a company can be made liable in an action for recovery of damages alleging breach of contract by the company?

RULE:

Section 230 of the Indian Contract Act states that an 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 by them.

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