Section 236 The Indian Contract Act, 1872
Section 236 – The Indian Contract Act, 1872
Title: Revocation of authority by act of parties
🔹 Bare Act Language:
Section 236 –
"The authority of an agent may be revoked by the principal or the agent, or may come to an end by operation of law."
🔍 Explanation:
This section states the modes by which an agency relationship can be terminated:
By the Principal: The principal may revoke (cancel) the agent’s authority.
By the Agent: The agent may renounce or revoke his authority.
By Operation of Law: The agency may end automatically due to certain legal reasons, such as death or insanity of the principal or agent, or insolvency.
🔹 Key Points:
Revocation by principal or agent must generally be communicated to be effective.
Operation of law means termination without any act by the parties, due to legal circumstances.
Termination affects the authority of the agent going forward but not necessarily the past acts done under the agency.
🔹 Related Sections:
Sections 201-210 discuss termination of agency in detail.
Section 176 – Agency continues till notice of death or insanity is received.
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