Agent's Duty to Principal
Agent not entitled to remuneration for business mis-conducted
220. An agent who is guilty of misconduct in the business of the agency is not entitled to any remuneration in respect of that part of the business which he has misconducted.
Illustrations
(a) A employs B to recover 1,00,000 Taka from C, and to lay it out on good security. B recovers the 1,00,000 Taka and lays out 90,000 Taka on good security, but lays out 10,000 Taka on security which he ought to have known to be bad, whereby A loses 2,000 Taka. B is entitled to remuneration for recovering the 1,00,000 Taka and for investing the 90,000 Taka. He is not entitled to any remuneration for investing the 10,000 Taka, and he must make good the 2,000 Taka to B.
(b) A employs B to recover 1,000 Taka from C. Through B's misconduct the money is not recovered. B is entitled to no remuneration for his services, and must make good the loss.