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Law · Q1218

Indian Penal Code

Graduate and Post Graduate · Law · question 1218

Q1218

A, a resident of Chennai, is an agent for B, a resident of Delhi. There is an express contract between them that all sums remitted by B to A will be invested by A in accordance with B's direction. B remits Rs. 5 lakhs to A with the direction that it be invested in buying shares of X company. A instead invests the same in buying shares of Y company believing in good faith that this will fetch more profit to B than investing the money in X company as directed by B. B suffers loss, because the value of shares of Y company declines. A is liable

A.
For criminal misappropriation of property as B suffers loss, because A has disobeyed B's directions
B.
For criminal breach of trust as B had entrusted the money to A and A had invested it in violation of B's directions
Answer
C.
For theft as wrongful loss has been caused by A to B
D.
To face a civil action by B on account of the loss suffered by B

Answer: Option B

Solution

Answer: Option B
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