The Indian Contract Act of 1872- Termination of Agency-Indian Contract Act
It does not contain specific provisions for the termination of agency relationships. However, an agency relationship can be terminated by various means as per general principles of contract law.
Here are a few common ways in which an agency relationship can be terminated under Indian law:
According to Section 201 of the Indian Contract Act, 1872, Termination of agency takes place in the following circumstances:
By revocation of authority by the principal.
By renunciation of his authority by the agent.
On the performance of the contract of the agency.
On the death of either principal or agent.
By insanity of either principal or agent.
With the expiration of the time period fixed for the contract of the agency.
By an agreement made between the principal and his agent.
With the insolvency of principal or agent (in few cases).
When the principal and his agent is an incorporated company, by its dissolution
With the destruction of the subject matter. (section 56)
It is important to note that the specific terms of the agency agreement and any applicable laws or regulations may also impact the termination process. It is advisable to seek legal counsel or refer to the specific terms of the agency agreement for guidance on the termination procedure.
Books Recommended: Check it Out
1. Beatsen (ed.)-Anson’s Law of Contract : (27th Ed. 1998)
2. Anson-Law of Contract (1998), Universal, Delhi
3. Pollock and Mulla-Indian Contract Act
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