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A, the agent in good faith disobeys his principal Z's directions and invest Z's money in some other…

The agent has committed no criminal breach of trust on these facts, but the principal may bring a civil action for the loss. The statutory illustration distinguishes a…

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A, the agent in good faith disobeys his principal Z's directions and invest Z's money in some other shares. Z suffers loss on that account. What shall A be guilty of?
I. no offence
II. criminal breach of trust
III. dishonest misappropriation of property
IV. Z may bring civil action against A

Select one answer
Answer and explanation

Correct answer A

The agent has committed no criminal breach of trust on these facts, but the principal may bring a civil action for the loss. The statutory illustration distinguishes a dishonest diversion of entrusted money from a good-faith investment made contrary to instructions. Disobedience and loss alone do not supply the missing dishonesty needed for criminal liability.

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