Section 213 The Indian Contract Act, 1872
Section 213 – The Indian Contract Act, 1872
📜 Title: "Agent’s duty to communicate with principal"
Text of Section 213:
"It is the duty of an agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal, and in seeking to obtain his instructions."
🔍 Explanation of Section 213:
This section defines the duty of an agent to stay in touch with the principal, especially in uncertain or difficult situations.
🧠 Key Points:
Difficult Situations:
If any problem or confusion arises while performing the agent’s duties,
The agent must make reasonable efforts to contact the principal for guidance.
Reasonable Diligence:
The agent is expected to act like a responsible and prudent person, not negligently.
It doesn’t require perfection but does require genuine effort to communicate.
Why This Matters:
It helps prevent unauthorized decisions by agents.
It protects both the principal’s interest and the agent from liability.
⚖️ Illustration:
A appoints B to sell a machine.
While negotiating, B receives two offers — one at a higher price with late payment, and another at a lower price with instant payment.
B should consult A before accepting either, as it is a case of difficulty.
✅ Conclusion:
Section 213 emphasizes clear communication and responsibility in the principal-agent relationship, especially in complex or unclear scenarios.
RELATED Blog
0 comments