Section 101 The Indian Contract Act, 1872

Section 101 of the Indian Contract Act, 1872 states:

Section 101 – Agent’s duty to pay sums received for principal

An agent is bound to pay to his principal all sums received on his account, subject to such deductions, if any, as may be lawfully made.

Explanation:

This section imposes a legal duty on an agent to hand over to the principal all money or property received on behalf of the principal, after deducting legitimate expenses or commissions, if applicable.

Illustration:

If A is an agent for B and collects ₹10,000 from a debtor on B’s behalf, A must pay this amount to B, after deducting any expenses or commission he is legally entitled to.

 

LEAVE A COMMENT

0 comments