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6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian
contract Act,1872:
(i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to
him from A. Afterwards A became insane.
(ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B.
Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?
contract Act,1872:
(i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to
him from A. Afterwards A became insane.
(ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B.
Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?
Most Upvoted Answer
6. Explain whether Agency will get terminated in the following cases u...
Termination of Agency Under The Indian Contract Act, 1872
The Indian Contract Act, 1872 outlines various conditions under which an agency can be terminated. Let's analyze the two cases provided.
Case (i): A gives authority to B to sell A’s land and to pay himself from the proceeds, and A subsequently becomes insane.
- The agency is terminated due to the insanity of A.
- According to Section 201 of the Indian Contract Act, the agency is terminated when the principal (A) becomes of unsound mind.
- B's authority to act on behalf of A ceases immediately upon A's insanity, making any actions taken by B thereafter unauthorized.
Case (ii): A appoints B as A’s agent to sell his land; B appoints C as his agent, and A revokes B's authority but not C's.
- In this scenario, the status of C's agency is affected by the revocation of B's authority.
- According to Section 191 of the Indian Contract Act, an agent cannot delegate his authority unless expressly permitted by the principal.
- Here, B’s appointment of C was not authorized by A. Therefore, C’s agency depends on B’s authority.
- When A revokes B's authority, C’s authority also comes to an end due to the principle of privity.
- C cannot continue acting on behalf of A, as C's authority was derived from B, who no longer has the authority to act for A.
Conclusion
- In summary, both cases result in the termination of agency due to specific provisions of The Indian Contract Act, 1872.
- A's insanity terminates B's authority, and the revocation of B's authority terminates C’s agency as well.
The Indian Contract Act, 1872 outlines various conditions under which an agency can be terminated. Let's analyze the two cases provided.
Case (i): A gives authority to B to sell A’s land and to pay himself from the proceeds, and A subsequently becomes insane.
- The agency is terminated due to the insanity of A.
- According to Section 201 of the Indian Contract Act, the agency is terminated when the principal (A) becomes of unsound mind.
- B's authority to act on behalf of A ceases immediately upon A's insanity, making any actions taken by B thereafter unauthorized.
Case (ii): A appoints B as A’s agent to sell his land; B appoints C as his agent, and A revokes B's authority but not C's.
- In this scenario, the status of C's agency is affected by the revocation of B's authority.
- According to Section 191 of the Indian Contract Act, an agent cannot delegate his authority unless expressly permitted by the principal.
- Here, B’s appointment of C was not authorized by A. Therefore, C’s agency depends on B’s authority.
- When A revokes B's authority, C’s authority also comes to an end due to the principle of privity.
- C cannot continue acting on behalf of A, as C's authority was derived from B, who no longer has the authority to act for A.
Conclusion
- In summary, both cases result in the termination of agency due to specific provisions of The Indian Contract Act, 1872.
- A's insanity terminates B's authority, and the revocation of B's authority terminates C’s agency as well.
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6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?
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6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?.
6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?.
Solutions for 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? defined & explained in the simplest way possible. Besides giving the explanation of
6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.?, a detailed solution for 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? has been provided alongside types of 6. Explain whether Agency will get terminated in the following cases under the provisions of The Indian contract Act,1872: (i) A gives authority to B to sell A’s land and to pay himself, out of the proceeds, the debt due to him from A. Afterwards A became insane. (ii) A appoints B as A’s agent to sell his land. B, under the authority of A, appoint C as agent of B. Afterwards A revokes the authority of B but not of C. What is the status of agency of C.? theory, EduRev gives you an
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