An authority given by two or more principals can be terminated

Solution (By Examveda Team)

First, let's define the key term: Authority, in the context of the Indian Contract Act, refers to the power or right granted by a principal to an agent to act on their behalf. This authority can be given by one or more principals.

The question pertains to the termination of an authority granted by *two or more* principals. This is a joint authority.

Correct Answer: Option A
An authority given by two or more principals can only be terminated by the notice of revocation or renunciation given by or to *all* the principals. This is because the authority is jointly granted, and therefore requires the unanimous consent of all grantors (principals) for its termination. A single principal cannot unilaterally revoke the authority.

Why other options are incorrect:
Option B: This is incorrect because, as explained above, a joint authority requires the consent of all principals for termination. One principal’s action cannot terminate the authority.

Option C: This option is too restrictive. While it might apply to a scenario with only two principals, it doesn't cover situations with three or more principals. The principle of unanimous consent must hold regardless of the number of principals.

Option D: This is clearly incorrect as Option A provides the correct answer.