Section 206 The Indian Contract Act, 1872
### **Section 206 – The Indian Contract Act, 1872**
**Title: Revocation where authority has been partly exercised**
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### 🔹 **Bare Act Language:**
> **Section 206** –
> *"The principal must compensate the agent for the revocation of the agency without sufficient cause, after the agent has exercised his authority to bind the principal."*
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### 🔍 **Explanation:**
This section protects an **agent** from **arbitrary or unfair revocation** of their authority by the **principal**, after the agent has begun performing the assigned task.
#### ✅ The principal is **liable to compensate** the agent if:
* The **revocation is without sufficient cause**, and
* The agent has already **started acting** on the authority given and may have incurred **expenses or liabilities**.
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### 🔹 **Illustration:**
* **A** appoints **B** as his agent to buy goods and authorizes B to enter into contracts on his behalf.
* B places orders with suppliers based on A’s instructions.
* Before delivery, A **revokes B’s authority** without any valid reason.
* B can **claim compensation** for the revocation as he had already **partly exercised** the authority.
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### 🔑 **Key Points:**
* Revocation is allowed, but must be **reasonable and justified**.
* If revocation happens **after partial performance**, **compensation is mandatory**.
* This section ensures **fairness** and protects the **efforts and interests of the agent**.
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