Section 257 The Indian Contract Act, 1872
Section 257 of the Indian Contract Act, 1872 relates to the agent’s lien on principal’s goods.
🔹 Section 257 – Agent’s lien on goods
"An agent, who has possession of goods of the principal, has a lien on the goods for remuneration due to him in respect of those goods."
🔍 Explanation:
An agent who holds possession of goods belonging to the principal has the right to retain those goods until his payment (remuneration or commission) for the services related to those goods is made.
This right is called an “agent’s lien”.
It protects the agent by allowing him to keep possession until he is paid.
📌 Example:
B is an agent of A and holds A’s goods for sale.
A owes B commission for selling those goods.
B can refuse to deliver the goods back to A or to a third party until B’s commission is paid.
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