Indian Contract Act Section 214 — Agent’s duty to communicate with principal

CHAPTER X AGENCY — Agent’s duty to principal

Commercial / Corporate

Summary

An agent must make a genuine effort to contact their principal when a difficult situation arises, and must try to get the principal’s instructions before acting. The duty is to use reasonable diligence, meaning the agent should not simply ignore the problem or make a major decision on their own if they can reasonably reach the principal for guidance.

Official Text

It is the duty of an agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal, and in seeking to obtain his instructions.