Section 220 to 230

  Contract act 220 to 230 .

Section 220 

agent not entitled to remuneration for business misconduct ------an agent who is guilty of misconduct in the business of the agency is not entitled to any remuneration in respect of that part of the business which he has misconducted.

Illustrations 

a.A employs B to recover 1,00,000/ rupees from C and to pay it out on good security ,B recovers the 1,00,000/ rupees and lays out 10,000 rupees on security which he ought to have known to be bad , where by A losses 2000 rupees .B is entitled to remuneration for recovering the 1,00,000 rupees and for investing the 90,0000 rupees .he is not entitled to any remuneration for investing the 10,000 rupees and he must make good the 2000 rupees to B.

b. A employs B to recover 1000 rupees from C.though B's misconduct the money is not recovered .B is entitled to no remuneration for his services and must make good the loss.

Section 221----Agent's lien on principal 's property ----

In the absence of any contract to the contrary an agent is entitled to retain goods ,papers and other property,whether movable or immovable of the Principal received by him until the amount due to himself for commission disbursement and services in respect of the same has been paid or accounted for to him.

Landmark judgement 

Gopal Das versus thakurdas 

The lien of agent does not give permission to an agent .he cannot sell and pledge this property.he can retain this property to get this remuneration m

Principal 's duty to agent 

Section 222.agent to be indemnified against consequences of lawful acts ----

The employer of an agent is bound to indeminify him against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him .

Landmark judgement 

Hichens versus jackson 

A divident broker had sold some dividends under a contract  at order of a solicitor.afterwards divident owner denied to sell that divident .the buyer had filed a suit to get compensation..the agent had to give this compensation .it was decided that he had got compensation from principal .

Illustrations 

a.B at Singapore under instructions from A of Calcutta contracts with C to deliver certain goods to him .A does not send the goods to B and sues B for breach of contract.B informs A of the suit and A authorises him to defend the suit .B defends the suit and is compelled to pay damage and costs and incurs expenses .A is liable to B for such damage and costs and incurs expenses .A  liable to B for such damages ,costs and expense .

b.B a broker at Calcutta by the orders of A a merchant there ,contracts with C for the purchase of 10 casks of oil for A . after wards A refuses to receive the oil and C sues B .B informs A who repudiates the contract altogether .B defends but unsuccessfully and has to pay damages and costs incurs expenses A is liable to B for such damages ,costs and expenses .

Section 223 .agent to be indemnified against consequences of acts done in good faith----where one person employs another to do an act ,and the agent does the act in good faith ,the employer is liable to indeminify the agent against the consequences of that act though it cause an injury to the right of third person.

Landmark judgement 

Admson versus jarvis

A auctioneer had auctioned some cattle at order of respondent.after that it was found that the cattle related with another person .so agent had to give money to that another person .the agent had got money from respondent because the work of auction is Valid .

Land mark judgement case no.2

Ram kumar versus  laxmi narayan 

In this matter and agent had been kept to import impure oil .the agent had been caught and punished .in this way he could not get any compensation from principal 

Illustrations 

a.A a decree holder and entitled to execution of B's goods requires the officer of the court to seize certain goods .representing them to  be the goods of B .the officer seizes the goods and is used by C ,the true owner of the goods .A is liable to indeminify the officer for the sum which he is compelled to pay to C ,in consequence of obeying A 's discretion .

  B.B at the request of A sells goods in the possession of A but which A had no right to dispose of B does not know this and hands over the proceeds of the sale to A .afterwards C the true owner of the goods and costs.A liable to indeminify B for what he has been compelled to pay to C. and for B 's own expenses.

Section 224 .non liability of employer of agent to do a criminal act ------where one person employs another to do an act which is criminal the employer is not liable to the agent either upon an express or an implied promise to indeminify him against the consequences of the act .

Illustrations 

a.A employs B to beat C and agrees to indeminify him against all consequences of the act .B thereupon beats C  and has to pay damages to C for so wrong doing .A is not liable to indeminify B for those damages.

b.B the proprietor of a newspaper publishes at A 's request a libel upon c in the paper and A agrees to indeminify B against the consequences of the publication and all costs and damages of any action in respect thereof .B is used by C and has to pay damages and also incurs expenses .A is not liable to B upon the indeminity .

Section 225 . compensation to agent for injury caused by principal 's neglect ----the principal must make compensation to his agent in respect of injury caused to such agent by the principal 's neglect or want of skill 

Illustrations 

A employs B as a bricklayer in building a house and puts up scaffolding is unskillfully put up and B is in consequence hurt .A must make compensation to B.

Effect of agency on contract with third person 

Section 226 .enforcement and consequence agent 's contract -----contracts entered into through an agent and obligations arising from acts done by an agent may be enforced in the same manner and will have the same legal consequences as if contracts had been entered into the acts done by the principal in-person 

Illustrations 

A A buys goods from B knowing that he is an agent for their sale but not knowing who is the principal.B's principal is the person entitled to claim from A the price of goods and A cannot in a suit by the principal set off against that claim a debt due to himself from B .

B.A being B's agent with authority to receive money in his behalf receives from C a sum of money due to B .C is discharged of his obligation to pay the sum in questions to B 

Section 227 . principal how far bound when agent exceeds authority ----when an agent does more than he is authorised to do and when the part of what he does which is within his authority can be separated from the part which is beyond his authority so much only of what he does as is whithin his authority is binding as between him and his principal.

Illustrations 

A being owner of a ship and cargo authorises B to procure an insurance for 4000 rupees on the ship .B procures a policy for 4000 rupees on the ship and another for the like sum on the cargo .A is bound to pay the premium for the policy on the ship but not the premium for the policy on the cargo .

Section 228.principal not bound when excess of Agent's authority is not separable .------where an agent does more than he is authorised to do and what he does beyond the scope of his authority cannot be separated from what is within it the principal is not   bound to recognize the transaction.

Illustration 

a authorizes B to buy 500 sheep for him .B buys 500 sheep and 200 lambs for one sum of 6000 rupees.A may repudiate the whole transaction.

Section 229 . consequences of notice given to agent -----any notice given to or information obtained by the agent provided it be given or obtained in the course of the business transacted by him for the principal shall as between the principal and third parties have the same legal consequences as if it had been given to or obtained by the principal.

Illustrations 

a.A is employed by B to buy from C certain goods of which C in the apparent owner and buys them accordingly .in the course of the treaty for the sale .A learns that the goods really belonged to D .but B is ignorant of that fact .B is not entitled to set off a debt owing to him from C against the price of goods .

B.A is employed by B to buy from C goods of which C is the apparent owner .A was before he was so employed a servant of C .and then learnt that the goods really belonged to D ,but B is ignorant of that fact .in spite of the knowledge of his agent ,B may set off against the price of the goods a debt owing to him from C.

Section 230.Agent cannot personally enforce nor be bound by contracts on behalf of principal ------ in the absence of any contact to that effect an agent cannot personally enforce contracts entered into by him on behalf of his principal nor is he personally bound by them.

Presumption of contract to contrary ----such a contract shall be presumed to exist in the following case ----

1.where the contract is made by an agent for the sale or purchase of goods for a merchant resident abroad .

2.where the agent does not disclose the name of his principal 

3.where the principal though disclosed cannot be sued.