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    Question

     Agent should not deal on his own account without first

    obtaining the consent of the principal, otherwise the principal may—
    A Repudiate the transaction Correct Answer Incorrect Answer
    B Claim from the agent any benefit which may have resulted to him from the transaction Correct Answer Incorrect Answer
    C Both (a) & (b) Correct Answer Incorrect Answer
    D Either (a) or (b) Correct Answer Incorrect Answer

    Solution

    Explanation:According to Section 215 and 216 of the Indian Contract Act:If an agent acts on his own account in a business transaction without informing the principal or obtaining consent, the principal may: •Repudiate the transaction (if it is disadvantageous), and/or •Claim any profit or benefit the agent obtained from such unauthorized dealing.

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