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Under the Indian Contract Act, 1872, assume the parties made no express agreement about termination.…

Section 201 ordinarily terminates an agency on the principal’s death. Under section 202, when the agent has an interest in the property that forms the subject matter, the…

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Under the Indian Contract Act, 1872, assume the parties made no express agreement about termination. Which fact can prevent the principal’s death from ending an agency to the prejudice of the agent?

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Answer and explanation

Correct answer A

Section 201 ordinarily terminates an agency on the principal’s death.

Under section 202, when the agent has an interest in the property that forms the subject matter, the agency cannot be terminated to the prejudice of that interest in the absence of an express contract.

Option feedback

Option A

Section 202 protects the agent’s interest in the subject matter against prejudicial termination.

Option B

Family relationship does not by itself give the agent a protected interest in the subject matter.

Option C

Foreign residence does not establish an interest in the subject matter.

Option D

A fixed term by itself does not establish an interest in the subject matter.

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