Indian Contract Act Section 215 — Right of principal when agent deals, on his own account, in business of agency without principal’s consent

CHAPTER X AGENCY — Agent’s duty to principal

Commercial / Corporate

Summary

If an agent does business on their own behalf in the same matter they are handling for the principal, without first getting the principal's permission and telling the principal everything important they know about it, the principal can cancel the deal. This is only allowed if the situation shows either that the agent hid a key fact dishonestly, or that the agent's actions turned out to be harmful to the principal.

Official Text

If an agent deals on his own account in the business of the agency, without first obtaining the consent of his principal and acquainting him with all material circumstances which have come to his own knowledge on the subject, the principal may repudiate the transaction, if the case shows, either that any material fact has been dishonestly concealed from him by the agent, or that the dealings of the agent have been disadvantageous to him. Illustrations