Contract act 21

 

Revocation of authority 

Section 201.terminaton of agency ----any agency is terminated by the principal, revoking his authority or by the agent renouncing the business of the agency or by the business of the agency being completed or by either the principal  being adjudicated an insolvent under the provisions of any act for time being in force for the relief of insolvent debtors .

Section 202 . termination of agency where agent has himself and 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 debt due to him from A .A cannot revoke this authority nor can it be terminated by insanity or death .

b.A consigns 1000 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 .when principal may revoke Agent's authority ---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.

Section 204 . Revocation where authority has been partly exercised so far as regards such acts and obligations as arise from acts already done in Agency.

Illustrations 

a.A authorises B to buy 1000 bales of cotton on account of A and to pay for it out of A 's money remaining in B 's hands .B buys 1000 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 authorises B to buy 1000 bales of cotton on account of A and to pay for it out of A 's money remaining in B 's hands .B buys 1000 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.compensation for revocation by Principal or renunciation by agent -----

Where there is an express or implied contract that the agency  should be continued for any period of time ,the pricipal 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 206 .notice of revocation or renunciation ----

Reasonable notice must be given of such revocation or renunciation other wise the damage thereby resulting to the principal or the agent as the case may be must be made good to the one by the other