Indian Contract Act Section 205 — Compensation for revocation by principal, or renunciation by agent

Summary

Where there is an express or implied contract that the agency should be continued for a certain period of time, and the agency is revoked by the principal or renounced by the agent without sufficient cause, the party responsible must compensate the other party for the loss. This applies whether the revocation or renunciation happens before the agreed period ends.

Official Text

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.

Related Judgments

• BHARAT PETROLEUM CORPORATION LTD. vs CHEMBUR SERVICE STATION — Supreme Court of India (2011)
• SOUTHERN ROADWAYS LTD., MADURAI, BY ITS SECRETARY. vs S.M. KRISHNAN — Supreme Court of India (1989)
• Reserved on: 3rd August 2010; Decision on: 11th August 2010; MSM DISC vs VIACOM 18 MEDIA PRIVATE LIMITED, AND ORS — Delhi High Court (2010)