Indian Contract Act Section 201 — Termination of agency

CHAPTER X AGENCY — Revocation of Authority

Commercial / Corporate

Summary

An agency comes to an end when the principal takes back the authority they gave to the agent. It also ends when the agent gives up or renounces the work of the agency. The agency is also terminated once the task or business for which it was set up is fully completed.

The agency also ends if either the principal or the agent dies, or if either of them becomes of unsound mind. Additionally, the agency is terminated if the principal is declared an insolvent under any law that is currently in force for the relief of insolvent debtors.

Official Text

An 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 or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors.