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Book 4 · Commercial transactions  ›  Division 3 · Transactions on a commission basis › Section 386

Section 386

(1) Where the commission agent has sold for less than the price set for them, or has bought for a higher price than that set for them for the purchase, the principal must, if they wish to repudiate the transaction as not having been concluded for their account, declare this without undue delay upon receiving the notice as to the transaction having been executed; otherwise, the deviation from the stipulated price is considered to be approved.

(2) If, upon providing notice of the execution of the transaction, the commission agent offers to cover the difference in price, then the principal will not be entitled to repudiate such transaction. The principal’s claim to compensation for damage in excess of the difference in price remains unaffected.

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