Chapter X - Agency
Section 210
Section 210: Ending sub-agent authority
Ending the original agent’s authority also ends the authority of appointed sub-agents, subject to the Act’s termination rules.
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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
The termination of the authority of an agent causes the termination (subject to the rules herein contained regarding the termination of an agent’s authority) of the authority of all sub-agents appointed by him.
Rule and business relevance
The sub-agency authority follows the original authority in the stated way. Relevant knowledge and other termination safeguards still need attention.
Limits and related provisions
Do not assume every separately appointed direct agent is a sub-agent. Classify the relationship before applying this rule.
Hypothetical business example
Hypothetical example: A sales agency ends and its appointed sub-agent must be informed and included in the handover process. The timing rules for termination remain relevant.
Practical decision flow
Identify genuine sub-agents appointed by the original agent.
Establish termination of the original authority.
Apply the relevant termination rules and communicate the change.
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 genuine sub-agents appointed by the original agent.
- Establish termination of the original authority.
- Apply the relevant termination rules and communicate the change.
Avoid
- Do not assume every separately appointed direct agent is a sub-agent. Classify the relationship before applying this rule.
Glossary
- Derivative authority
- The sub-agent’s authority linked to the original agent’s authority.
- Sub-agent
- The person defined in section 191, not every independently appointed agent.
Frequently asked questions
Does sub-agent authority ordinarily continue independently?
The section states that termination of the agent’s authority causes its termination.
Are other termination rules excluded?
No. The provision expressly remains subject to them.
Should direct appointed agents be treated identically?
First distinguish their relationship under section 194.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026