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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