Indian Contract Act Section 212 — Skill and diligence required from agent
CHAPTER X AGENCY — Agent’s duty to principal
Commercial / Corporate
Summary
An agent must carry out the agency's work with the level of skill that people in similar lines of business generally have, unless the principal has been told that the agent lacks that skill. The agent is always required to act with reasonable care and to use whatever skill they actually have.
The agent must compensate the principal for the direct consequences of their own neglect, lack of skill, or misconduct. However, the agent is not responsible for losses or damage that are only indirectly or remotely caused by such neglect, lack of skill, or misconduct.
Official Text
An agent is bound to conduct the business of the agency with as much skill as is generally possessed by persons engaged in similar business, unless the principal has notice of his want of skill. The agent is always bound to act with reasonable diligence, and to use such skill as he possesses; and to make compensation to his principal in respect of the direct consequences of his own neglect, want of skill, or misconduct, but not in respect of loss or damage which are indirectly or remotely caused by such neglect, want of skill, or misconduct. Illustrations the ship arrived, but not any profit he might have made by the subsequent rise.