Section 210 - Termination of sub-agent's authority, Section 211 -
Agent's duty in conducting principal's business : Indian Contract Act
What is Termination of sub-agent's authority? What is Agent's duty
in conducting principal's business? Section 210 and 211 of Indian Contract Act
Section 210 of Indian Contract Act 1872 : "Termination of
210. The termination of the authority of an agent causes the
termination (subject to the rules herein contained regarding the
termination of an agent's authority) of the authority of all
sub-agents appointed by him.
Section 211 of Indian Contract Act 1872 : "Agent's duty in
conducting principal's business"
211. 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. When 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
(a) A, an agent engaged in carrying on for B a business, in
which it is the custom to invest from time to time, at interest,
the moneys which may be in hand, omits to make such investment.
A must make good to B the interest usually obtained by such
(b) B, a broker, in whose business it is not the custom to
sell on credit, sells goods of A on credit to C, whose credit at
the time was very high. C, before payment, becomes insolvent. B
must make good the loss to A.