Chapter- 8 Contracts Relating to Agency

Section 60 : Agent to be responsible

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1) Except when otherwise provided for in the contract, the agent shall be personally responsible for transactions made by him/her on behalf of the principal person in the following circumstances:

(a) In case he/she concludes a contract with a third party in relation to any transaction with provision for personal responsibility.

(b) In case any work has been done for or on behalf of an unidentified principal person, in case the principal person is not identified;

(c) In case the principal person can not be sued for any reason;

(d) In case the contract has been signed in his/her own name;

(e) In case anything has been done in contravention of the contract relating to the appointment of an agent or beyond his/her authority;

(f) In case any fraud or cheating has been committed in the course of the transaction

(g) In case the agent has to bear personal liability according to the nature of the trade,

(h) In case the interest of the agent is also involved in the transaction.

2) Except when otherwise provided for in the contract concluded between the agent and a third person, only the fact that the agent is personally responsible under sub-section (1) shall not be deemed to have prejudices the right of the third person to make any claim against the principal person and legal action may be initiated against the principal person as well for arrears due from the agent.

3) For the purpose of initiating legal action against the principal person under sub-section (2), the time limit shall be deemed to have begun from the date of the last payment made by the agent.

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