Indian Contract Act Section 202 — Termination of agency, where agent has an interest in subject-matter

CHAPTER X AGENCY — Revocation of Authority

Commercial / Corporate

Summary

Where the agent has a personal interest in the property that is the subject of the agency, the agency cannot be terminated to the detriment of that interest, unless there is an express contract allowing such termination. In other words, if the agent stands to gain or lose personally from the property involved, the principal cannot simply end the agency in a way that harms the agent's stake, unless the parties have explicitly agreed otherwise.

Official Text

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. Illustrations