Section 250 The Indian Contract Act, 1872
Section 250 of the Indian Contract Act, 1872 concerns the right of an agent to retain possession of goods, money, or securities until his claims are satisfied — essentially a lien in the context of agency.
🔹 Section 250 – Agent’s lien on goods, money or securities
An agent has a lien on goods, money or securities belonging to the principal, for money due to him in respect of his agency.
🔍 Explanation:
An agent who holds goods, money, or securities of the principal has the right to retain possession of those until the principal pays what is due to the agent (e.g., commission, remuneration, expenses).
This right of retention is called a lien.
The agent can keep the goods or money until the amount owed to him is settled, even if the principal asks for the return of the goods or money.
🧑⚖️ Example:
A appoints B as an agent to sell goods.
B sells the goods but the principal has not paid B the agreed commission.
B can hold on to the proceeds or goods until the commission is paid.
📌 Key Points:
This lien exists only for claims related to the agency.
The agent cannot misuse this lien for unrelated claims.
The lien helps agents protect their dues and expenses.
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