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A employs B to recover 1,00,000 rupees from C and to lay it out on good security. B recovers the money…

Section 220 denies an agent remuneration "in respect of that part of the business which he has misconducted". Illustration (a) to section 220 allows B remuneration for…

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A employs B to recover 1,00,000 rupees from C and to lay it out on good security. B recovers the money and lays out 90,000 rupees on good security, but 10,000 rupees on security which he ought to have known to be bad, whereby 2,000 rupees are lost. What is the position on B's remuneration?

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Correct answer D

Section 220 denies an agent remuneration "in respect of that part of the business which he has misconducted". Illustration (a) to section 220 allows B remuneration for recovering the 1,00,000 rupees and for investing the 90,000 rupees, but none for investing the 10,000 rupees, and he must also make good the 2,000 rupees lost. Misconduct in one part does not forfeit pay for the parts properly done.

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