Section 216
Principal‟s right to benefit gained by agent dealing on his own account in business of agency
Chapter 11: 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.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 213Agent‟s accounts
- 214Agent‟s duty to communicate with principal
- 215Right of principal when agent deals, on his own account, in business of agency without principal‟s consent
- 217Agent‟s right of retainer out of sums received on principal‟s account
- 218Agent‟s duty to pay sums received for principal
- 219When agent‟s remuneration becomes due