Chapter X - Agency
Section 219
Section 219: When remuneration becomes due
Without a special contract, remuneration for an act is due on completion, with the stated rule allowing detention of money received for goods sold.
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Need advice on Section 219?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
In the absence of any special contract, payment for the performance of any act is not due to the agent until the completion of such act; but an agent may detain moneys received by him on account of goods sold, although the whole of the goods consigned to him for sale may not have been sold, or although the sale may not be actually complete.
Rule and business relevance
The first limb sets a default completion rule. The second permits an agent to detain sale money even though all consigned goods have not been sold or the sale may not be entirely complete.
Limits and related provisions
Read special payment terms before applying the default. Do not collapse the specific sale-money rule into a universal right to demand every fee in advance.
Hypothetical business example
Hypothetical example: A selling agent completes sales of some consigned goods while others remain unsold. The sale-money qualification is considered alongside the remuneration agreement.
Practical decision flow
Read any special remuneration contract.
Identify the act and its completion status.
Assess the specific right regarding money received for goods sold.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Read any special remuneration contract.
- Identify the act and its completion status.
- Assess the specific right regarding money received for goods sold.
Avoid
- Read special payment terms before applying the default. Do not collapse the specific sale-money rule into a universal right to demand every fee in advance.
Glossary
- Completion rule
- The default point at which payment for an act becomes due.
- Special contract
- Agreed payment terms that may displace the default.
Frequently asked questions
Can the parties agree different timing?
Yes. The default applies in the absence of a special contract.
Must every consigned good be sold before sale money can be detained?
The second limb expressly addresses incomplete disposal of the consignment.
Does this authorise every advance fee claim?
No. The actual terms and stated statutory situation matter.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026