Indian Contract Act,1872
Act No : 9
Section : Right of principal when agent deals, on his own account, inbusiness of agency without principal's consen
215.Right of principal when agent deals, on his own account, inbusiness of agency without principal's consent.-If an agent deals onhis own account in the business of the agency, without first obtainingthe consent of his principal and acquainting him with all materialcircumstances which have come to his own knowledge on the subject, theprincipal may repudiate the transaction, if the case shows either thatany material fact has been dishonestly concealed from him by theagent, or that the dealings of the agent have been disadvantageous tohim.70 Illustrations (a)A directs B to sell A's estate. B buys the estate for himselfin the name of C. A, oh discovering that B has bought the estate forhimself, may repudiate the sale, if he can show that B has dishonestlyconcealed any material fact, or that the sale has been disadvantageousto him. (b)A directs B to sell A's estate B, on looking over the estatebefore selling it, finds a mine on the estate which is unknown to A. Binforms A that he wishes to buy the estate for himself, but concealsthe discovery of the mine. A allows ` to buy in ignorance of theexistence of the mine. A, on discovering that B knew of the mine atthe time he bought the estate, may either repudiate or adopt the saleat his option.
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