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Section 208 - When termination of agent's authority takes effect as to agent, and as to third persons, Section 209 - Agent's duty on termination of agency by principal's death or insanity : Indian Contract Act 1872

 

When termination of agent's authority takes effect as to agent, and as to third persons? Agent's duty on termination of agency by principal's death or insanity? Section 208 and 209 of Indian Contract Act 1872

Section 208 of Indian Contract Act 1872 : "When termination of agent's authority takes effect as to agent, and as to third persons"

208. The termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.

Illustrations
(a) A directs B to sell goods for him, and agrees to give B five per cent commission on the price fetched by the goods. A afterwards, by letter, revokes B's authority. B, after the letter is sent, but before he receives it, sells the goods for 100 rupees. The sale is binding on A, and B is entitled to five rupees as his commission.

(b) A, at Madras, by letter, directs B to sell for him some cotton lying in a warehouse in Bombay, and afterwards, by letter, revokes his authority to sell, and directs B to send the cotton to Madras. B, after receiving the second letter, enters into a contract with C, who knows of the first letter, but not of the second, for the sale to him of the cotton. C pays B the money, with which B absconds. C's payment is good as against A.

(c) A directs B, his agent, to pay certain money to C. A dies, and D takes out probate to his will. B, after A's death, but before hearing of it, pays the money to C. The payment is good as against D, the executor.

Section 209 of Indian Contract Act 1872 : "Agent's duty on termination of agency by principal's death or insanity"

209. When an agency is terminated by the principal dying or becoming of unsound mind, the agent is bound to take, on behalf of the representatives of his late principal, all reasonable steps for the protection and preservation of the interests entrusted to him.

 

INDIAN CONTRACT ACT 1872

Section 206 - Notice of revocation or renunciation

Section 207 - Revocation and renunciation may be expressed or implied

Section 208 - When termination of agent's authority takes effect as to agent, and as to third persons

Section 209 - Agent's duty on termination of agency by principal's death or insanity

Section 210 - Termination of sub-agent's authority

 

 

Agent's duty to Principal

Section 211 - Agent's duty in conducting principal's business

Section 212 - Skill and diligence required from agent

Section 213 - Agent's accounts

Section 214 - Agent's duty to communicate with principal

Section 215 - Right of principal when agent deals, on his own account, in business of agency without principal's consent

 

 

Section 216 - Principal's right to benefit gained by agent dealing on his own account in business of agency

Section 217 - Agent's right of retainer out of sums received on principal's account

Section 218 - Agent's duty to pay sums received for principal

Section 219 - When agent's remuneration becomes due

Section 220 - Agent not entitled to remuneration for business misconducted

 

 

Section 221 - Agent's lien on principal's property

Principal’s duty to agent

Section 222 - Agent to be indemnified against consequences of lawful acts

Section 223 - Agent to be indemnified against consequences of acts done in good faith

Section 224 - Non-liability of employer of agent to do a criminal act

Section 225 - Compensation to agent for injury caused by principal's neglect

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