Section 207 The Indian Contract Act, 1872
Section 207 – Indian Contract Act, 1872
Title: Revocation and renunciation may be expressed or implied
Bare Act Language:
Section 207.
Revocation and renunciation may be express or implied by the conduct of the principal or agent respectively.
🔍 Explanation:
This section clarifies the manner in which an agency can be:
Revoked by the principal, or
Renounced by the agent.
Both actions can be done either:
Expressly (through clear written or spoken words), or
Impliedly (through behavior or conduct indicating the intention).
✅ Key Points:
There is no strict requirement for a formal notice.
Implied revocation/renunciation is based on reasonable inference from actions.
Still, revocation must be communicated effectively to the other party (as per Section 208).
🧑⚖️ Example:
Express Revocation: A tells B in writing that he no longer wishes B to act as his agent.
Implied Revocation: A appoints C to do the same work B was doing without informing B. This may imply B's authority is revoked.
Implied Renunciation: B, the agent, stops acting on A’s behalf and takes up a conflicting job—implying he no longer wishes to act for A.

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