The question is, whether a horse sold by A to B is sound.
A says to B—”Go and ask C. C knows all about it.” C’s statement is an admission.
This section is another exception to the general rule. When a party refers to a third person for some information for opinion on the matter in dispute, the statement of third person are receivable as admission against the person referring. A reference may be made by a party to a third person only for information about the subject-matter.
When compensation was paid in presence of the witness, the evidence of the said witness would be admissible as information under this section. The reason is that when a party refers to another person for a statement of his view the party approves of his utterness in anticipation and adopts that as his own.
Where an agreement was arrived at between the counsel for parties that if the defendant was to state on oath in a particular Gurdwara that the suit land was not of plaintiff and the defendant had not executed any agreement in favour of plaintiff, the suit be dismissed and in pursuance of the order of the court and on the basis of the agreement, the defendant did take oath and the suit was dismissed, it was held that the compromise would be covered by Section 20 and the plaintiff would be bound by the statement of the defendant.