A directs B to sell A's estate. B buys the estate for himself in the name of C. On discovering this,…
Section 215 lets the principal repudiate a transaction in which the agent dealt on his own account without consent "if the case shows, either that any material fact has been…
Choose your answer
A directs B to sell A's estate. B buys the estate for himself in the name of C. On discovering this, when may A repudiate the sale under section 215 of the Indian Contract Act, 1872?
Answer and explanation
Correct answer C
Section 215 lets the principal repudiate a transaction in which the agent dealt on his own account without consent "if the case shows, 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". Illustration (a) to section 215 applies these two grounds to B's purchase in C's name. Repudiation is not automatic, and the Act sets no three-month limit for it.
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