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Legal Attitude for clat........... Notes - CLAT

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Question 2. Principle: Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts that property to his own use, or dishonestly uses the dispose of that property in violation of any direction of law prescribing the mode in which such trust has to be discharged, or of any legal contract, express or implied which he has made touching the discharge of such trust, commits criminal breach of trust.

Facts:  A residing in Calcutta, is an agent for Z, residing at Delhi. There is an express or implied contract between A and Z, that all sums remitted by Z to A shall be invested by A according to Z’s direction. Z remits a lakh of rupees to A, with directions to A to invest the same in Reliance shares. A believing in good faith that it will be more advantageous for Z to invest in L&T shares, disobeys Z’s direction and buys a share in L&T for Z, instead of buying Reliance shares.  Z suffered loss due to the same. Decide whether A has committed criminal breach of trust?

(a) Yes, A has committed the offense of criminal breach of trust because he disobeyed the directions of Z.
(b) Yes, A has committed the offense because Z suffered loss
(c) No, A has not committed criminal breach of trust
(d) A as the agent of Z is liable for the offense.

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