Report No. 13
167. Section 220.-
An agent is not entitled to any remuneration in respect of any transaction which is obviously, or to his knowledge, unlawful nor is he entitled to remuneration in respect of any transaction entered into by him in violation of the duties arising from the fiduciary character of the relationship between him and the principal, even if the transaction be adopted by the principal. Bowstead appends an illustration: 'An agent, who is employed to sell certain land sells it to a company in which he is a director and a large shareholder. He is not entitled to commission upon the sale, even if it be adopted and confirmed by the principal'.1
1. Bowstead; Op. Cit., 11th Edn., 137 Article 68(b), III 4.
We think that the Act should have specific provision1 with regard to the non-liability of the principal to pay the remuneration in the cases stated above.
1. Vide Expl. to section 220, App I.
168. Sections 221-228.-
No change is considered necessary in sections 221 to 228.