Indian Contract Act Section 209 — Agent’s duty on termination of agency by principal’s death or insanity

CHAPTER X AGENCY — Revocation of Authority

Commercial / Corporate

Summary

When an agency ends because the principal has died or become mentally unsound, the agent must still act on behalf of the principal’s representatives. The agent is required to take all reasonable steps to protect and preserve the interests that were entrusted to him. This duty applies even though the agency itself has come to an end.

Official Text

When an agency is terminated by the principal dying or becoming of unsound mind, the agent is bound to take, on behalf of the representatives of his late principal, all reasonable steps for the protection and preservation of the interests entrusted to him.