Section 211 The Indian Contract Act, 1872
Section 211 of the Indian Contract Act, 1872 deals with the duty of an agent to conduct the business of the principal according to directions.
🔹 Section 211 – Agent’s duty in conducting principal’s business
"An agent is bound to conduct the business of his principal according to the directions given by the principal, or, in the absence of any such directions, according to the custom which prevails in doing business of the same kind at the place where the agent conducts such business.
If the agent acts otherwise, if any loss be sustained, he must make it good to his principal, and, if any profit accrues, he must account for it."
✅ Explanation:
The agent must:
Follow the principal's instructions.
In absence of instructions, follow prevailing trade customs.
If the agent acts against these directions or customs:
They are liable for any loss suffered by the principal.
Any profit made in violation must be returned to the principal.
📌 Example:
A instructs B (his agent) to sell goods in the local market.
B sells them in another city for a loss, even though there’s a good price locally.
B must compensate A for the loss due to disobedience of directions.
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