alleryStart learning →If an agent departs from directions and a profit accrues, he must
Akeep it as a reward
Bshare it equally
Caccount for it to him
Dgive it away to charity
Answer & Solution
Correct answer: C. account for it to him
Section 211 requires the agent to make good any loss and to account for any profit when he departs from directions or custom.
Keep practising Agency
Browse all Agency questions for CA Foundation, or explore more Businesslaw topics.
Related questions
An agent for sale makes an unauthorised misrepresentation and C buys. The contract isFrauds by agents in matters outside their authorityA tells B not to sell below a set price, but C, unaware, buys below it from B. A isA principal who made third persons believe an agent's acts were authorised isA person who contracted as agent but really acted on his own accountA person untruly claims to be an agent and no ratification follows. He mustA third party induces belief that only the principal is liable. He laterA sells cotton to B and later learns B was agent for C. A may sue