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Section 202, Contract Act 1872: Termination Of Agency, Where Agent Has An Interest In Subject-matter

Section 202 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Termination of agency, where agent has an interest in subject-matter', is reproduced hereunder:—

“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.”

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