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.
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.
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Next · Section 203When principal may revoke agent's authority. →All sections / सभी धाराएँThe Indian Contract Act, 1872 →
More sections of this act
Section 1 · Short title.Section 2 · Interpretation-clause.Section 3 · Communication, acceptance and revocation of proposals.Section 4 · Communication when complete.Section 5 · Revocation of proposals and acceptances.Section 6 · Revocation how made.Section 7 · Acceptance must be absolute.Section 8 · Acceptance by performing conditions, or receiving consideration.India Code, Government of India. Text fetched 09 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.