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
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.
(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.
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.
Section 186 - Agent's authority may be express or implied
Section 187 - Definitions of express and implied authority
Section 188 - Extent of agent's authority
Section 189 - Agent's authority in an emergency
Section 190 - When agent cannot delegate
Section 191 - Sub-agent defined
Section 192 - Representation of principal by sub-agent properly appointed
Section 193 - Agent's responsibility for sub-agent appointed without authority
Section 194 - Relation between principal and person duly appointed by agent to act in business of agency
Section 195 - Agent's duty in naming such person
Section 196 - Right of person as to acts done for him without his authority
Section 197 - Effect of ratification Ratification may be expressed or implied
Section 198 - Knowledge requisite for valid ratification
Section 199 - Effect of ratifying unauthorized act forming part of a transaction
Section 200 - Ratification of unauthorized act cannot injure third person
Revocation of Authority
Section 201 - Termination of agency
Section 202 - Termination of agency, where agent has an interest in subject-matter
Section 203 - When principal may revoke agent's authority
Section 204 - Revocation where authority has been partly exercised
Section 205 - Compensation for revocation by principal, or renunciation by agent