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The Indian Contract Act, 1872: page 48

The Indian Contract Act, 1872, India Code delivered snapshot 85a7a066098255c9, physical page 48. Unreviewed extraction.

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                                                         Illustrations
     (a)A directs B to sell A’s estate. B buys the estate for himself in the name of C. A, on discovering that B has bought the
estate for himself, may repudiate the sale, if he can show that B has dishonestly concealed any material fact, or that the sale has
been disadvantageous to him.
     (b)A directs B to sell A’s estate B, on looking over the estate before selling it, finds a mine on the estate which is unknown
to A. B informs A that he wishes to buy the estate for himself, but conceals the discovery of the mine. A allows B to buy, in
ignorance of the existence of the mine. A, on discovering that B knew of the mine at the time he bought the estate, may either
repudiate or adopt the sale at his option.

   216. Principal’s right to benefit gained by agent dealing on his own account in business of
agency.—If an agent, without the knowledge of his principal, deals in the business of the agency on his
own account instead of on account of his principal, the principal is entitled to claim from the agent any
benefit which may have resulted to him from the transaction.
                                                          Illustration
     A directs B, his agent, to buy a certain house for him. B tells A it cannot be bought, and buys the house for himself. A may,
on discovering that B has bought the house, compel him to sell it to A at the price he gave for it.

    217.Agent’s right of retainer out of sums received on principal’s account.—An agent may retain,
                                                                                    e
out of any sums received on account of the principal in the business of the agency, all moneys due to
                                                                             od
himself in respect of advances made or expenses properly incurred by him in conducting such business,
and also such remuneration as may be payable to him for acting as agent.
                                                                      aC
   218. Agent’s duty to pay sums received for principal.—Subject to such deductions, the agent is
bound to pay to his principal all sums received on his account.
                                                                di
     219.When agent’s remuneration becomes due.—In the absence of any special contract, payment
                                                           In
for the performance of any act is not due to the agent until the completion of such act; but an agent may
detain moneys received by him on account of goods sold, although the whole of the goods consigned to
him for sale may not have been sold, or although the sale may not be actually complete.
    220.Agent not entitled to remuneration for business misconducted.—An agent who is guilty of
misconduct in the business of the agency, is not entitled to any remuneration in respect of that part of the
business which he has misconducted.
                                                         Illustrations
     (a) A employs B to recover, 1,00,000 rupees from C, and to lay it out on good security. B recovers the 1,00,000 rupees; and
lays out 90,000 rupees on good security, but lays out 10,000 rupees on security which he ought to have known to be bad,
whereby A loses 2,000 rupees. B is entitled to remuneration for recovering the 1,00,000 rupees and for investing the 90,000
rupees. He is not entitled to any remuneration for investing the 10,000 rupees, and he must make good the 2,000 rupees to B.
    (b)A employs B to recover 1,000 rupees from C. Through B’s misconduct the money is not recovered. B is entitled to no
remuneration for his services, and must make good the loss.

     221. Agent’s lien on principal’s property.—In the absence of any contract to the contrary, an agent
is entitled to retain goods, papers and other property, whether movable or immovable of the principal
received by him, until the amount due to himself for commission, disbursements and services in respect
of the same has been paid or accounted for to him.
                                                  Principal’s duty to agent
    222.Agent to be indemnified against consequences of lawful acts.—The employer of an agent is
bound to indemnify him against the consequences of all lawful acts done by such agent in exercise of the
authority conferred upon him.




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