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Under section 221 of the Indian Contract Act, 1872, what kind of lien does an agent have over the…

Section 221 gives the agent a right to retain the principal’s property received by the agent for unpaid commission, disbursements and services in respect of that property.…

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Under section 221 of the Indian Contract Act, 1872, what kind of lien does an agent have over the principal’s property received by the agent for unpaid commission in respect of that property, absent a contract to the contrary?

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Answer and explanation

Correct answer B

Section 221 gives the agent a right to retain the principal’s property received by the agent for unpaid commission, disbursements and services in respect of that property. The connection to the retained property makes this a particular lien.

Option feedback

Option A

A general lien would secure a general balance rather than only sums due in respect of the retained property.

Option B

The lien under section 221 secures sums due in respect of the property the agent holds.

Option C

Section 221 expressly grants a right of retention absent a contrary contract.

Option D

The retention right arises from section 221 and does not require a court order to create it.

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