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Sanjay, a resident of Bangalore is an agent of Rahul in Calcutta. There is an express contract b/w them…

Under the illustration to BNS s.316 (formerly IPC s.405), an agent who, without dishonest intention, deviates from instructions and invests entrusted funds elsewhere in good…

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Sanjay, a resident of Bangalore is an agent of Rahul in Calcutta. There is an express contract b/w them that all sums remitted by Rahul to Sanjay will be invested by Sanjay according to Rahul's directions. Rahul remits Rs 10 Lakh to Sanjay's a/c & asks him to invest it in shares of Investment Ltd. Sanjay instead, without Rahul's consent, invests it in Netgain Ltd. believing it to be a better prospect. Rahul suffers a loss. In these circumstances Sanjay

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Correct answer D

Under the illustration to BNS s.316 (formerly IPC s.405), an agent who, without dishonest intention, deviates from instructions and invests entrusted funds elsewhere in good faith believing it more profitable for his principal commits no criminal breach of trust, cheating or theft, incurring only civil liability for the resulting loss.

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