Termination of agency, where agent has an interest in subject-matter
Chapter 11: Agency
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.
(a) A gives authority to B to sell A‟s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death.
(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price, the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 199Effect of ratifying unauthorized act forming part of a transaction
- 200Ratification of unauthorized act cannot injure third person
- 201Termination of agency
- 203When principal may revoke agent‟s authority
- 204Revocation where authority has been partly exercised
- 205Compensation for revocation by principal, or renunciation by agent