Ajay appoints Vijay to sell his electronic goods lying in his godown. He also agrees to give10% commission on the sale price to Vijay. Afterwards,…

According to section 208 of the Indian Contract Act,1872, the termination of the authority of an agent does not, so far as regards the agent, take effect before it becomes known to him, or so far as regards third persons, before it becomes known to them. In the instant case, Vijay was appointed by Ajay to sell his electronic goods and for which Vijay will be given10% commission on the sale price. Subsequently, Ajay revokes Vijay’s authority by sending the letter to Vijay on 3 rd March which was received by Vijay on 7 th March. But on 5 th March, Vijay already sold the goods worth - 1,20,000. He claimed for commission from Ajay, but Ajay refused. Since, Vijay came to know about revocation of agency after selling the goods, and so therefore, he has right to claim the commission from Ajay.