Chapter X - Agency
Section 207
Section 207: Express and implied termination
Revocation by the principal and renunciation by the agent may be express or implied from conduct.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Revocation and renunciation may be expressed or may be implied in the conduct of the principal or agent respectively.
Illustration
A empowers B to let A’s house. Afterwards A lets it himself. This is an implied revocation of B’s authority.
Rule and business relevance
A principal’s act inconsistent with continuing the entrusted task can imply revocation, as illustrated by personally letting the property the agent was appointed to let.
Limits and related provisions
Implied termination still needs assessment under the other termination rules, including when it becomes known and any protected interests.
Hypothetical business example
Hypothetical example: An owner authorises an agent to let a property, then lets it personally. That conduct can imply revocation of the letting authority.
Practical decision flow
Identify express words or relevant conduct.
Determine whether they withdraw authority or renounce the business.
Check knowledge, notice and other termination consequences.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify express words or relevant conduct.
- Determine whether they withdraw authority or renounce the business.
- Check knowledge, notice and other termination consequences.
Avoid
- Implied termination still needs assessment under the other termination rules, including when it becomes known and any protected interests.
Glossary
- Implied revocation
- Withdrawal inferred from the principal’s conduct.
- Implied renunciation
- Withdrawal inferred from the agent’s conduct.
Frequently asked questions
Must termination always be stated in writing?
This section recognises express or implied termination, subject to applicable requirements.
Does inferred termination remove notice questions?
No. The surrounding rules still apply.
Whose conduct corresponds to revocation?
The principal’s; renunciation corresponds to the agent’s conduct.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026