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Law · Q537

Indian Contract Act

Graduate and Post Graduate · Law · question 537

Q537

A' has engaged the services of 'B', a financial planner, to make investments on his behalf. 'A' remits Rs. 10 lakhs to 'B' asking him to purchase stocks in company 'X'. 'B' finding investment in company 'Y to be possibly more lucrative invests the money in purchasing its shares. Company 'Y' goes into liquidation resulting in losses. Here:

A.
B' is guilty of criminal reach of trust
B.
B' is guilty of dishonest misappropriation
C.
B' is guilty of cheating
D.
B' has not committed any offence
Answer

Answer: Option D

Solution

Answer: Option D
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