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Section 216, Contract Act 1872: Principal's Right To Benefit Gained By Agent...

Section 216 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Principal's right to benefit gained by agent dealing on his own account in business of agency', is reproduced hereunder:—

“If an agent, without the knowledge of his principal, deals in the business of the agency on his own account instead of on account to his principal, the principal is entitled to claim from the agent any benefit which may have resulted to him from the transaction.

Illustration

A directs B, his agent, to buy a certain house for him. B tells A it cannot be bought, and buys the house for himself. A may, on discovering that B has bought the house, compel him to sell it to A at the price he gave for it.”

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