Agency under indian contract act

Section 201 of the act, 1872 describes the various modes of termination of agency.

• Termination of agency by act of the parties: -
  • Agreement
    • The relation of principal and agent, like any other agreement, may be terminated at any time and at any stage by the mutual agreement between the principal and the agent.
    • According to Section 203, ICA,1872 the principal may revoke the authority of the agent at any time before the agent has exercised his authority so as to bind the principal unless the agencyis irrevocable.
    • An agent is entitled to renounce his power by refusing to act or by notifyingthe principal that he will not act for the principal.
    • Performance of the contract-
      • Where the agency is for a particular object, it is terminated when the object is accomplished or when the accomplishment of the object becomes impossible.
      • When the agent is appointed for a fixed period of time, the agency comes to an end after the expiry of that time even if the work is not complete.
      • As per Section 209 of ICA,1872, When the agent or the principaldies or becomes of unsound mind, the agency is terminated.
      • The insolvency of the agent, it is accepted, also terminate the agency unless the acts to be done by the agent are merely formal acts.
      • An agency which is created to deal with a certain subject-matter comes to an end by the destruction of the subject-matter.
      • The contract of agency is valid so long as the countries of the principal and the agent are at peace. If war breaks out between the two countries, the contract of agency is terminated.
      • When a company is dissolved, the contract of agency with or by the company automatically comes to an end.