Indian Contract Act Section 217 — Agent’s right of retainer out of sums received on principal’s account

CHAPTER X AGENCY — Agent’s duty to principal

Commercial / Corporate

Summary

An agent is allowed to hold back money from any amounts they collect on behalf of the principal as part of the agency work. This covers all money owed to the agent for advances they made or expenses they properly paid while running that business. It also includes any payment or fee that is due to the agent for their work as the agent.

Official Text

An agent may retain, out of any sums received on account of the principal in the business of the agency, all moneys due to himself in respect of advances made or expenses properly incurred by him in conducting such business, and also such remuneration as may be payable to him for acting as agent.