Indian Contract Act Section 216 — Principal’s right to benefit gained by agent dealing on his own account in business of agency

CHAPTER X AGENCY — Agent’s duty to principal

Commercial / Corporate

Summary

If an agent carries on the business of the agency for their own benefit, instead of for the principal, and does so without telling the principal, then the principal can claim from the agent any benefit the agent gained from that transaction.

Official Text

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