THE INDIAN CONTRACT ACT, 1872

When termination of agent’s authority takes effect as to agent, and as to third persons The termination of the authority of an agent does not, so far as regards the agent, take effect before itbecomes known to him, or, so far as regards third persons, before it becomes known to them.Illustrations(a) A directs B to […]

Revocation and renunciation may be expressed or implied Revocation and renunciation may be expressed or may be implied in the conduct of the principal or agent respectively.IllustrationA empowers B to let A‟s house. Afterwards A lets it himself. This is an implied revocation ofB‟s authority. Practice area’s of B K Goyal & Co LLP Income

Notice of revocation or renunciation —Reasonable notice must be given of such revocation or renunciation, otherwise the damage thereby resulting to the principal or the agent, as the case may be, must be made good to the one by the other Practice area’s of B K Goyal & Co LLP Income Tax Return Filing |

Compensation for revocation by principal, or renunciation by agent Where there is an express or implied contract that the agency should be continued for any period of time, the principal mustmake compensation to the agent, or the agent to the principal, as the case may be, for any previousrevocation or renunciation of the agency without

Revocation where authority has been partly exercised The principal cannot revoke the Authority given to his agent after the authority has been partly exercised, so far as regards such acts and obligations as arise from acts already done in the agency.Illustrations(a) A authorizes B to buy 1,000 bales of cotton on account of A, and

When principal may revoke agent’s authority The principal may, save as is otherwise provided by the last preceding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the principal. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing |

Termination of agency where agent has an interest in subject-matter Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.Illustrations(a) A gives authority to B to sell A‟s land, and

Termination of agency —An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the

Ratification of unauthorized act cannot injure third person An act done by one person on behalf of another, without such other person‟s authority, which, if done with authority, would have the effect of subjecting a third person to damages, or of terminating any right or interest of a third person,cannot, by ratification, be made to

Effect of ratifying unauthorized act forming part of a transaction A person ratifying any unauthorized act done on his behalf ratifies the whole of the transaction of which such act formed a part. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice |