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      Question

      As per the Contract Act what are the duties of an agent

      in conducting principal's business?
      A An agent is not bound by any directions given by the principal Correct Answer Incorrect Answer
      B An agent must follow the directions of the principal but is not bound by custom Correct Answer Incorrect Answer
      C An agent is not responsible for any loss incurred while conducting business Correct Answer Incorrect Answer
      D An agent must follow custom but is not bound by the principal's directions Correct Answer Incorrect Answer
      E An agent is bound to conduct business according to directions given by the pincipal or prevailing custom Correct Answer Incorrect Answer

      Solution

      Section 211.   Agent's duty in conducting principal's business:  An agent is bound to conduct the business of his principal according to the directions given by the principal, or, in the absence of any such directions, according to the custom which prevails in doing business of the same kind at the place where the agent conducts such business. When the agent acts otherwise, if any loss be sustained, he must make it good to his principal, and if any profit accrues, he must account for it.

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