Page 61 - 01. Indian Contract Act, 1872

Note: Agency coupled with interest (Sec. 202)
It occurs when the agent has an interest in the authority granted to him, or he has
an interest in the subject, matter with which he has to deal.
It cannot be terminated to the prejudice of interest in the absence of contract to the
contrary.
It applies on fulfillment of following conditions:
(i) agent's interest should exist at the time of agency's creation.
(ii) authority given to agent must be intended for protecting the agent's interest.
(iii) agent's interest must be substantial
(iv) agent's interest should be over and above his remuneration.

Termination of Agency:

Termination of Agency

By Act of Parties By operation of law

 Agreement between principal and agent Performance of contract
 Revocation of authority by principal Expiration of period
 Revocation of authority by agent
 Death/insanity of principal or agent
 Insolvency of principal
 Dissolution of company
 Destruction of the subject-matter

When Termination of Agency Takes Effect
 Sec. 208: As regards agent , when it becomes known to him.
 As regard third parties, when it comes to their knowledge .
 Sec: 210: Termination of, the agent's authority terminates the sub- agents authority.
 Sec: 209: Agent has a duty to protect his principal's interest where the principal or
becomes of unsound mind.

Irrecoverable Agency.
 Revocation of agency is not possible in following cases:
a) Sec. 202: where agency is coupled with interest.
b) Sec.204: where the authority has been partly exercised.
c) When the agency has incurred personal liability.

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