Section 202 - Termination of agency, where agent has an interest in subject-matter, Section 203 - When principal may revoke agent's authority : Indian Contract Act 1872

How to do Termination of agency, where agent has an interest in subject-matter? When principal may revoke agent's authority? Section 202 and 203 of Indian Contract Act 1872


 

Section 202 of Indian Contract Act 1872 : "Termination of agency, where agent has an interest in subject-matter"

202. 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 to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death.

(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself, out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death.

 

Section 203 of Indian Contract Act 1872 : "When principal may revoke agent's authority"

203. 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.