Indian Contract Act : Principal's right to benefit gained by agent dealing on hisown account in business of

Indian Contract Act,1872

Act No : 9

Section : Principal's right to benefit gained by agent dealing on hisown account in business of agency

216.Principal's right to benefit gained by agent dealing on hisown account in business of agency.-If an agent, without the knowledgeof his principal, deals in the business of the agency on his ownaccount instead of on account of his principal, the principal isentitled to claim from the agent any benefit which may have resultedto him from the transaction. Illustration A directs B, his agent, to buy a certain house for him. B tells Ait cannot be bought, and buys the house for himself. A may, ondiscovering that B has bought the house, compel him to sell it to A atthe price he gave for it.