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Section 207: Revocation and renunciation may be expressed or implied

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 206 All 266 Sections of Indian Contract Act Section 208

Legal Commentary & Landmark Judgments: Section 207

Section 207 provides that the revocation of an agency by the principal, or the renunciation of an agency by the agent, may be expressed in words or implied from the conduct of the principal or agent respectively.

  • Express Revocation or Renunciation: Direct written or oral declaration communicating the formal termination or relinquishment of agency authority.
  • Implied Revocation by Inconsistent Conduct: Revocation is inferred where the principal engages in acts completely incompatible with the continuance of authority (e.g., selling the property himself, appointing another exclusive agent, or directly conducting the transaction).
  • Implied Renunciation by Agent's Conduct: Renunciation is inferred where the agent accepts inconsistent employment, enters into adverse commercial competition, or abandons performance.
Key Landmark Precedents:
  • Syed Abdul Khader v. Rami Reddy (1979) 2 SCC 601: The Supreme Court recognized that revocation of a power of attorney can be inferred from the principal's subsequent conduct, including the execution of inconsistent registered instruments dealing directly with the property.
  • Carter v. White (1883) 25 Ch D 666: The Court affirmed that revocation of authority may be gathered from unequivocal acts of the principal that render the exercise of agency authority impossible or redundant.
Courtroom Practice & Strategic Litigation Guidance:

In property litigation, when an attorney purports to execute a sale deed after the principal had already entered into a registered agreement with someone else, argue implied revocation under Section 207. The principal's direct disposal of the property constitutes an unequivocal implied revocation of the agent's authority to sell.

Section 206 All 266 Sections of Indian Contract Act Section 208