Section 204 - Revocation where authority has been partly exercised, Section 205 - Compensation for revocation by principal, or renunciation by agent : Indian Contract Act 1872

How to do Revocation where authority has been partly exercised? How to pay Compensation for revocation by principal, or renunciation by agent? Section 204 and 205 of Indian Contract Act 1872


 

Section 204 of Indian Contract Act 1872 : "Revocation where authority has been partly exercised"

204. 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 to pay for it out of A's money remaining in B's hands. B buys 1,000 bales of cotton in his own name, so as to make himself personally liable for the price. A cannot revoke B's authority so far as regards payment for the cotton.

(b) A authorizes B to buy 1,000 bales of cotton on account of A, and to pay for it out of A's money remaining in B's hands. B buys 1,000 bales of cotton in A's name and so as not to render himself personally liable for the price. A can revoke B's authority to pay for the cotton.

 

Section 205 of Indian Contract Act 1872 : "Compensation for revocation by principal, or renunciation by agent"

205. Where there is an express or implied contract that the agency should be continued for any period of time, the principal must make compensation to the agent, or the agent to the principal, as the case may be, for any previous revocation or renunciation of the agency without sufficient cause.