Section 167 The Indian Contract Act, 1872
Section 167 of the Indian Contract Act, 1872 deals with termination of agency by revocation or renunciation.
🔹 Section 167 – Revocation of agency
"The authority of an agent may be revoked by the principal, or the agency may be renounced by the agent."
🔍 Explanation:
An agency relationship can be ended in two ways:
Revocation by the principal: The principal can withdraw the agent’s authority at any time.
Renunciation by the agent: The agent can voluntarily give up or quit their agency.
This section states the basic principle of termination of agency by either party.
Additional points:
Revocation or renunciation must be communicated to the other party.
The agency relationship ends once revocation or renunciation is effective.
There might be exceptions if there is a contract limiting the right to revoke.
📌 Example:
A appoints B as his agent to sell goods.
Later, A tells B he no longer wants B to act as his agent — this is revocation.
Alternatively, B informs A that he no longer wants to be an agent — this is renunciation.
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