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
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
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.
(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
(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.