208When termination of agent's authority takes effect as to agent, and as to third persons
The termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or, so far as regards third persons, before it becomes known to them.
Illustrations
(a) A directs B to sell goods for him, and agrees to give B five per cent. commission on the price fetched by the goods. A afterwards, by letter, revoke B's authority. B, after the letter is sent, but before he receives it, sells the goods for 100 rupees. The sale is binding on A, and B is entitled to five rupees as his commission.
(b) A, at Madras, by letter, directs B to sell for him some cotton lying in a warehouse in Bombay, and afterwards, by letter, revokes his authority to sell, and directs B to send the cotton to Madras. B, after receiving the second letter, enters into a contract with C, who knows of the first letter, but not of the second, for the sale to him of the cotton. C pays B the money, with which B absconds. C's payment is good as against A.
(c) A directs B, his agent, to pay certain money to C. A dies, and D takes out probate to his will. B, after A's death, but before hearing of it, pays the money to C. The payment is good as against D, the executor.
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- 201 Termination of agency
- 202 Termination of agency, where agent has an interest in subject-matter
- 203 When principal may revoke agent's authority
- 204 Revocation where authority has been partly exercised
- 205 Compensation for revocation by principal, or renunciation by agent
- 206 Notice of revocation or renunciation
- 207 Revocation and renunciation may be expressed or implied
- 208 When termination of agent's authority takes effect as to agent, and as to third persons
- 209 Agent's duty on termination of agency by principal's death or insanity
- 210 Termination of sub-agent's authority