alleryStart learning →After permitted deductions, the agent must pay the principal
Ahalf of the sums received
Bwhatever sums he chooses
Cinterest on advances only
Dall sums received for him
Answer & Solution
Correct answer: D. all sums received for him
Section 218 obliges the agent to hand over everything received for the principal after the permitted deductions.
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