Section 201 of ICA : Section 201: Termination Of Agency

Explanation using Example

Imagine Raj appoints Anita as his agent to sell his car. Here's how Section 201 of The Indian Contract Act, 1872 could apply:

• If Raj decides he no longer wants to sell his car, he can revoke Anita's authority to act as his agent, effectively terminating the agency.
• Anita may decide selling cars isn't for her and renounce her role as Raj's agent, which would also terminate the agency.
• Once Anita successfully sells Raj's car, the purpose of the agency is completed, and the agency relationship ends.
• If Raj were to pass away or become mentally incapacitated before Anita sells the car, the agency would terminate.
• If Raj goes bankrupt and is declared insolvent, the agency would end as he can no longer legally appoint an agent for his now-seized assets.