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Section 210: Termination of sub-agent's authority

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 209 All 266 Sections of Indian Contract Act Section 211

Legal Commentary & Landmark Judgments: Section 210

Section 210 enacts the derivative rule of sub-agency termination, providing that the termination of an agent's authority causes the automatic termination of the authority of all sub-agents appointed by him, subject to the rules regarding effective notice.

  • Derivative Character of Sub-Agency: A sub-agent's authority is wholly parasitic upon and derived from the main agent's mandate; the stream cannot rise higher than its source.
  • Automatic Cascading Termination: The moment the primary agent's authority is revoked, renounced, or extinguished by death or bankruptcy, all sub-agencies created by him collapse automatically by operation of law.
  • Application of Notice Rules: Termination of the sub-agent's power takes effect as against the sub-agent and third parties subject to Section 208 principles of knowledge and notice.
Key Landmark Precedents:
  • Union of India v. Amar Singh AIR 1960 SC 233: The Supreme Court affirmed that the authority of a sub-agent collapses upon the termination of the primary agency, distinguishing situations where direct privity had been established with a substituted agent.
  • De Bussche v. Alt (1878) 8 Ch D 286: The Court of Appeal held that the authority of a sub-agent is coterminous with that of the main agent and terminates automatically upon revocation of the main agent's authority.
Courtroom Practice & Strategic Litigation Guidance:

When revoking the mandate of a main contractor or general agent, verify whether they engaged sub-agents or sub-dealers. Under Section 210, their authority terminates automatically. To ensure this termination takes effect against third parties under Section 208, send copy notices directly to all known sub-agents and publicize the revocation to prevent unauthorized dealings.

Section 209 All 266 Sections of Indian Contract Act Section 211