Section 212(b) in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
(b)A, an agent for the sale of goods, having authority to sell on credit, sells to B on credit, without making the proper and usual enquiries as to the solvency of B. B, at the time of such sale, is insolvent. A must make compensation to his principal in respect of any loss thereby sustained.
