Chapter X - Agency
Section 236
Section 236: False agency and demands for performance
A person who contracts in the character of agent while actually acting personally cannot require performance under this provision.
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Need advice on Section 236?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
A person with whom a contract has been entered into in the character of agent, is not entitled to require the performance of it, if he was in reality acting, not as agent, but on his own account.
Rule and business relevance
The mismatch between the stated agency role and the person’s true personal dealing is the key condition.
Limits and related provisions
Distinguish this person from a genuine agent whose principal is undisclosed and from a false-authority compensation claim under section 235.
Hypothetical business example
Hypothetical example: A buyer purports to contract as another’s representative but in fact acts solely on the buyer’s own account. The buyer cannot rely on the purported agency character to demand performance as stated here.
Practical decision flow
Identify the capacity represented when contracting.
Determine whether the person actually acted as agent or personally.
Assess the attempted demand for performance under that mismatch.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the capacity represented when contracting.
- Determine whether the person actually acted as agent or personally.
- Assess the attempted demand for performance under that mismatch.
Avoid
- Distinguish this person from a genuine agent whose principal is undisclosed and from a false-authority compensation claim under section 235.
Glossary
- Falsely contracting as agent
- Presenting agency status while in reality dealing on personal account.
- Performance claim
- The demand the provision prevents in that setting.
Frequently asked questions
Is this the same as every undisclosed-principal case?
No. Here the person was actually acting on personal account.
What consequence does the section state?
The person is not entitled to require performance of the contract.
Should section 235 also be considered where authority was falsely claimed?
Yes, for its distinct compensation conditions.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026