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CS Professional · Drafting, Pleadings and Appearances · Drafting of Commercial Contracts

While drafting a supply agreement, a company secretary inserts: 'This Agreement is executed by Nair as agent for the Supplier, and the Buyer acknowledges that rights and liabilities under it shall be enforceable by and against the Supplier as if the Supplier had signed personally.' Which provision's effect does this clause mainly reflect?

The clause reflects Section 226. That section provides that contracts entered into through an agent, and obligations from the agent's acts, are enforced with the same legal consequences as if the principal had made them personally, which is what the clause records.

  1. ASection 32, enforcement of contracts contingent on an event happening
  2. BSection 226, consequences of contracts entered into through an agentCorrect
  3. CSection 134, discharge of surety on release of principal debtor
  4. DSection 192, representation of principal by sub-agent

Explanation

The clause states that contracts made through an agent have the same enforcement and consequences as if the principal acted in person, which is the content of Section 226. The others deal with contingent contracts, suretyship and sub-agents.

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