Section 241 The Indian Contract Act, 1872
Section 241 of the Indian Contract Act, 1872 is related to the duties and responsibilities of an agent towards the principal.
๐น Section 241 โ Agent to account for all benefits
"An agent is bound to account for all benefits which he has received in the course of the agency, or in respect of it, and to make good to the principal all losses caused by the agentโs fraud or negligence."
โ Explanation:
The agent must account for all benefits (profits, gains, or advantages) earned while acting on behalf of the principal.
If the agent causes any loss to the principal due to fraud or negligence, the agent is liable to compensate the principal for those losses.
๐ Example:
A appoints B as his agent to purchase goods.
B secretly gets a commission from the seller (without informing A).
B must disclose and account for that commission to A.
If B was negligent and caused a loss, B must compensate A.
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