Section 156 The Indian Contract Act, 1872
Section 156 of the Indian Contract Act, 1872 is part of the chapter on Contracts relating to Agency.
🔹 Section 156 – Termination of sub-agent’s authority:
"The authority of a sub-agent is terminated by the termination of the authority of the original agent."
✅ Explanation:
A sub-agent is appointed by an agent to act under their control and carry out tasks delegated by the principal.
When the original agent's authority ends, the sub-agent automatically loses their authority as well.
📌 Example:
A (principal) appoints B (agent), who appoints C as a sub-agent.
If A revokes B’s authority or B’s agency ends (due to death, expiry, etc.), C's (sub-agent's) authority also ends automatically.
🔁 Key Concept: Derivative Authority
A sub-agent's power is derivative, meaning it flows from the original agent’s authority.
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