Section 214 - Agent's duty to communicate with principal, Section 215 - Right of principal when agent deals, on his own account, in business of agency without principal's consent : Indian Contract Act 1872

What is Agent's duty to communicate with principal? What is Right of principal when agent deals, on his own account, in business of agency without principal's consent? Section 214 and 215 of Indian Contract Act 1872

Section 214 of Indian Contract Act 1872 : "Agent's duty to communicate with principal"

214. It is the duty of an agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal, and in seeking to obtain his instructions.

Section 215 of Indian Contract Act 1872 : "Right of principal when agent deals, on his own account, in business of agency without principal's consent"

215. If an agent deals on his own account in the business of the agency, without first obtaining the consent of his principal and acquainting him with all material circumstances which have come to his own knowledge on the subject, the principal may repudiate the transaction, if the case show, either that any material fact has been dishonestly concealed from him by the agent, or that the dealings of the agent have been disadvantageous to him.

Illustrations
(a) A directs B to sell A's estate. B buys the estate for himself in the name of C. A, on discovering that B has bought the estate for himself, may repudiate the sale, if he can show that B has dishonestly concealed any material fact, or that the sale has been disadvantageous to him.

(b) A directs B to sell A's estate. B, on looking over the estate before selling it, finds a mine on the estate which is unknown to A. B informs A that he wishes to buy the estate for himself, but conceals the discovery of the mine. A allows B to buy, in ignorance of the existence of the mine. A, on discovering that B knew of the mine at the time he bought the estate, may either repudiate or adopt the sale at his option.

INDIAN CONTRACT ACT 1872

Section 206 - Notice of revocation or renunciation

Section 207 - Revocation and renunciation may be expressed or implied

Section 208 - When termination of agent's authority takes effect as to agent, and as to third persons

Section 209 - Agent's duty on termination of agency by principal's death or insanity

Section 210 - Termination of sub-agent's authority

Agent's duty to Principal

Section 211 - Agent's duty in conducting principal's business

Section 212 - Skill and diligence required from agent

Section 213 - Agent's accounts

Section 214 - Agent's duty to communicate with principal

Section 215 - Right of principal when agent deals, on his own account, in business of agency without principal's consent