ICA Section 195: Agent's duty in naming such person
Indian Contract Act, 1872 · Chapter 10: Agency
¶195. Agent's duty in naming such person. In selecting such agent for his principal, an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case; and, if he does this, he is not responsible to the principal for the acts or negligence of the agent so selected.
¶Illustrations
¶(a) A instructs B, a merchant, to buy a ship for him. B employs a ship surveyor of good reputation to choose a ship for A. The surveyor makes the choice negligently and the ship turns out to be un seaworthy and is lost. B is not, but the surveyor is, responsible to A.
¶(b) A consigns goods to B, a merchant, for sale. B, in due course, employs an auctioneer in good credit to sell the goods of A, and allows the auctioneer to receive the proceeds of the sale. The auctioneer afterwards becomes insolvent without having accounted for the proceeds. B is not responsible to A for the proceeds.
Study: explanations and related material
Official reference: India Code, Legislative Department — source review: 29 September 2026.Recorded edition / snapshot date: 2026-09-29.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 182. "Agent" and "Principal" defined
- 183. Who may employ agent
- 184. Who may be an agent
- 185. Consideration not necessary
- 186. Agent's authority may be expressed or implied
- 187. Definitions of express and implied authority
- 188. Extent of agent's authority
- 189. Agent's authority in an emergency
- 190. When agent cannot delegate
- 191. "Sub-agent" defined
- 192. Representation of principal by sub-agent properly appointed
- 193. Agent's responsibility for sub-agent appointed without authority
- 194. Relation between principal and person duly appointed by agent to act in business of agency
- 196. Right of person as to acts done for him without his authority: effect of ratification
- 197. Ratification may be expressed or implied
- 198. Knowledge requisite for valid ratification
- 199. Effect of ratifying unauthorized act forming part of transaction
- 200. Ratification of unauthorized act cannot injure third person
- 201. Termination of agency
- 202. Termination of agency, where agent has an interest in subject-matter
- 203. When principal may revoke agent's authority
- 204. Revocation where authority has been partly exercised
- 205. Compensation for revocation by principal, or renunciation by agent
- 206. Notice of revocation or renunciation
- 207. Revocation and renunciation may be expressed or implied
- 208. When termination of agent's authority takes effect as to agent, and as to third persons
- 209. Agent's duty on termination of agency by principal's death or insanity
- 210. Termination of sub-agent's authority
- 211. Agent's duty in conducting principal's business
- 212. Skill and diligence required from agent
- 213. Agent's accounts
- 214. Agent's duty to communicate with principal
- 215. Right of principal when agent deals, on his own account, in business of agency without principal's consent
- 216. Principal's right to benefit gained by agent dealing on his own account in business of agency
- 217. Agent's right of retainer out of sums received on principal's account
- 218. Agent's duty to pay sums received for principal
- 219. When agent's remuneration becomes due
- 220. Agent not entitled to remuneration for business misconducted
- 221. Agent's lien on principal's property
- 222. Agent to be indemnified against consequences of lawful acts
- 223. Agent to be indemnified against consequences of acts done in good faith
- 224. Non-liability of employer of agent to do a criminal act
- 225. Compensation to agent for for injury caused by principal's neglect
- 226. Enforcement and consequences of agent's contracts
- 227. Principal how far bound, when agent exceeds authority
- 228. Principal not bound when excess of agent's authority is not separable
- 229. Consequences of notice given to agent
- 230. Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231. Rights of parties to a contract made by agent not disclosed
- 232. Performance of contract with agent supposed to be principal
- 233. Right of person dealing with agent personally liable
- 234. Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235. Liability of pretended agent
- 236. Person falsely contracting as agent, not entitled to performance
- 237. Liability of principal inducing belief that agent's unauthorised acts were authorised
- 238. Effect, on agreement, of misrepresentation or fraud by agent