When principal may revoke agent's authority
Section 203 of the Indian Contract Act, 1872 deals with when principal may revoke agent's authority. The principal may, save as is otherwise provided by the last preceding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the principal. The Act came into force on 01 Sep 1872.
The principal may, save as is otherwise provided by the last preceding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the principal.
Section 203, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Amar Nath vs Gian Chand
Court's Decision & Legal Precedent
The Court examined whether a registered special power of attorney had in fact been cancelled before the attorney presented and registered the sale deed, and held that a claim of oral cancellation of a registered power of attorney cannot be accepted lightly; until the agent's authority is effectively revoked and that revocation is brought home, acts done by the attorney within the apparent scope of the power bind the principal as against a bona fide purchaser, and the registering officer's role under Sections 32 to 34 of the Registration Act is confined accordingly.
On this section: Tests when a principal has in fact revoked his agent's authority before it was exercised, and what proof of that revocation is required before the agent's exercise of the power can be disowned.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Even in the power of attorney, specific power was granted to negotiate with any intending purchaser for sale of the properties, to fix the sale price, to receive the advance amount, to issue valid receipt, to receive entire sale consideration and to execute a registered sale deed. 29.Section 203 of the Indian Contract Act, 1872 is as follows: "203.When principal may revoke agent's authority.—The principal may, save as is otherwise provided by the last preceding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the principal." (Emphasis …
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… dismissing the suit holding that Ex.B5 power of attorney is one coupled with interest contrary to the recitals in Ex.B5 power of attorney and without properly appreciating the provisions of Section 91 and 92 of Indian Evidence Act, 1872? > ii.Whether the Courts below have properly appreciated the provisions of Sections 201 and 203 of the Indian Contract Act, 1872, particularly when Ex.B5 power of attorney is not one coupled with interest?" 9.The learned counsel submitted that the findings of the Courts below that as the power of attorney in favour of the 1st defendant was coupled with interest and so the unilateral cancellation of the …
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… The learned counsel further submitted that unilateral cancellation of Power of Attorney is not tenable in view of Section 202 of the Indian Contract Act, 1872 and if a Principal wants to revoke the authority given by him, such revocation must be prior to the exercise of the authority by the Agent prescribed under Section 203 of the Indian Contract Act, 1872, which reads as follows:- ''203. When principal may revoke agent's authority.- The principal may, save as is otherwise provided by the last preceding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the …
Questions about Section 203
What have the courts held on Section 203 of the Indian Contract Act?
Amar Nath vs Gian Chand is the leading judgment on this section among those set out below: Tests when a principal has in fact revoked his agent's authority before it was exercised, and what proof of that revocation is required before the agent's exercise of the power can be disowned.
How do I find court cases under Section 203 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 203, section 203 Contract Act, section 203 of the Indian Contract Act. People searching for it also type 203 contract act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Amar Nath vs Gian Chand.
When did Section 203 of the Indian Contract Act come into force?
Section 203 of the Indian Contract Act, cited as Contract Act 203, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.