Indian Contract Act Section 218 — Agent’s duty to pay sums received for principal

CHAPTER X AGENCY — Agent’s duty to principal

Commercial / Corporate

Summary

An agent must pay the principal all money received on the principal’s behalf, but only after making any deductions that are allowed. The section does not specify what those deductions are, only that they are subject to them.

Official Text

Subject to such deductions, the agent is bound to pay to his principal all sums received on his account.