The document discusses the various ways an agency relationship can be terminated under Indian law. It lists 7 ways an agency can end: 1) revocation by the principal, 2) renunciation by the agent, 3) completion of the business, 4) death of the principal or agent, 5) if the principal or agent becomes unsound of mind, 6) insolvency of the principal, 7) expiry of time if the agency was created for a fixed period. It provides details and examples for each type of termination.
The document discusses the various ways an agency relationship can be terminated under Indian law. It lists 7 ways an agency can end: 1) revocation by the principal, 2) renunciation by the agent, 3) completion of the business, 4) death of the principal or agent, 5) if the principal or agent becomes unsound of mind, 6) insolvency of the principal, 7) expiry of time if the agency was created for a fixed period. It provides details and examples for each type of termination.
The document discusses the various ways an agency relationship can be terminated under Indian law. It lists 7 ways an agency can end: 1) revocation by the principal, 2) renunciation by the agent, 3) completion of the business, 4) death of the principal or agent, 5) if the principal or agent becomes unsound of mind, 6) insolvency of the principal, 7) expiry of time if the agency was created for a fixed period. It provides details and examples for each type of termination.
The document discusses the various ways an agency relationship can be terminated under Indian law. It lists 7 ways an agency can end: 1) revocation by the principal, 2) renunciation by the agent, 3) completion of the business, 4) death of the principal or agent, 5) if the principal or agent becomes unsound of mind, 6) insolvency of the principal, 7) expiry of time if the agency was created for a fixed period. It provides details and examples for each type of termination.
agent. 1.By revocation of agent’s authority(Sec-203) 2. By renunciation of the business of agency by the agent(Sec-206) 3. By the completion of business (Sec-201) 4.Principal or agent’s death (Sec-201) 5. Principal or agent becoming person of unsound mind (Sec-201) 6. Insolvency of principal (Sec-201) 7. Expiry of time (Sec-201) 1.By revocation of agent’s authority(Sec-203) ➢ Principal may revoke his agent’s authority and that puts an end to the agency-S.203 ➢ Revocation and renunciation may be express or implied.S.207 ➢ Revocation operates prospectively.S.204 ➢ Where an agency has been created for a fixed period, a reasonable notice would be necessary to terminate it. S.206 ➢ When the authority of an agent is “coupled with interest”, the authority conferred on the agent cannot be revoked to the prejudice of the agent’s interest. S.202 1.By revocation of agent’s authority(Sec-203) Vakalatnama can be withdrawn by the client at any time. There is no such thing as an irrevocable ‘Vakalatnama’. After collecting the case papers, the advocate was trying to blackmail the client. The client lost faith in him. He terminated the ‘vakalatnama’ and sought return of his file. It was immaterial that he was working without his professional fee. Corresponding to the right of the client he was under professional duty to handover papers to the client. C.V.Sudhindra V Divine Light School for Blind, AIR 2009 Kant 5 2. By renunciation of the business of agency by the agent(Sec-206) ➢ An agent may renounce the business of agency in the same manner in which the principal has the right of revocation. ➢ The agent would have to compensate the principal for any premature renunciation without sufficient cause. S.205(agency is for a fixed period) ➢ Reasonable notice of renunciation is necessary. ➢ If the agent renounces without proper notice, he shall have to make good any damage thereby resulting to the principal. S.206 3. By the completion of business (Sec-201) ➢ An agency is automatically terminated when its business is completed. ➢ For ex: where an agent is appointed to sell goods, his authority gets terminated when the sale is completed. He cannot afterwards alter the terms of the sale. Venkatachalam V Narayanan,ILR(1914)39 Mad 376. ➢ But the Allahabad and Culcutta High Courts have held that agency is not terminated on the completion of the sale but continues until payment of the sale proceeds to the principal. Babu Ram V Ram Dayal, ILR(1890)12 All 541 4.Principal or agent’s death (Sec-201) 5. Principal or agent becoming person of unsound mind (Sec-201) ➢ An agency is determined automatically on the death or insanity of the principal or the agent, irrespective of whether the other has notice of that. ➢ Acts done by the agent before death would remain binding. ➢ Exception: A karta of H.U.F. Appoints an agent to manage family property and he dies, the agency is said to continue because it relates to the joint family, and not the karta personally. Shankar Lal V Tosan Pal Singh, AIR1934, All.553 6. Insolvency of principal (Sec-201) ➢ An agency ends on the principal being adjudicated insolvent.
➢ However, the agency does not terminate
immediately on the presentation of a petition for the adjudication of the principal as an insolvent.
➢ Where the agency is created by two or more
principals jointly, insolvency of one of them does not determine the agency automatically. 7. Expiry of time (Sec-201) ➢ Where an agent has been appointed for a fixed term, the expiration of the term puts an end to the agency, whether the purpose of the agency has been accomplished or not. ➢ Where the agency was to run a petrol pump for a specified period, it was held that the agent was bound to vacate the premises on expiry of the period. There was no renewal clause, nor in fact there was any renewal. P. Sukhadev V Commissioner of Endowments,(1998)1 AP