Shradha Rajoria, B.A. L.L.B. (Hons.), KPMSOL, NMIMS, Mumbai
INTRODUCTION
A "Contract of Agency" is when someone hires someone else to do something for them or to represent them when dealing with third parties. The person being represented is known as the "principal," and the person doing the representing is known as the "agent" as mentioned in section 1821 of Indian Contract Act. The agent's job is to deal legally with third parties on the behalf of the principal. But by doing this, he doesn't become a part of the contract and he doesn't have to pay anything because of that contract. Principal is responsible for everything his agent does, as long as it's within the scope of his power. The contract between the principal and the agent needs to be governed because there is a legal relation existing between them. Indian Contract Act not only includes the laws related to formation of contract of agency but also the laws related to termination of contract of agency so as to have an undisputed end to the contract of agency with less ambiguity. Contracts of agency are a type of general contract. As a result, an agency can end the same way a contract is ended, unless the agency is irrevocable. The relationship between a principal and an agent can only end if the parties to the agency do something or agree to do something, or if the law does something. Section 201 to section 2102 of Indian Contract Act deals with the termination of contract of Agency. To resolve disputes efficiently, it is highly necessary to know about the sections that are dealing with termination of agency as the relationship subsisting between a principal and an agent is a legal one. This paper aims to analyze the legal framework related to termination of contract of agency along with the landmark and important cases which have shaped the past, present and future of termination of contract of agency.
