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Section 188 - Extent of agent's authority, Section 189 - Agent's authority in an emergency : Indian Contract Act 1872]

What is the Extent of agent's authority? What is Agent's authority in an emergency? Section 188 and 189 of Indian Contract Act 1872


Section 188 of Indian Contract Act 1872 : "Extent of agent's authority"

188. An agent having an authority to do an act has authority to do every lawful thing which is necessary in order to do such act.

An agent having an authority to carry on a business has authority to do every lawful thing necessary for the purpose, or usually done in the course, of conducting such business.

(a) A is employed by B, residing in London, to recover at Bombay a debt due to B. A may adopt any legal process necessary for the purpose of recovering the debt, and may give a valid discharge for the same.
(b) A constitutes B as his agent to carry on his business of a ship-builder. B may purchase timber and other materials, and hire workmen, for the purpose of carrying on the business.


Section 189 of Indian Contract Act 1872 : "Agent's authority in an emergency"

189. An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.

(a) An agent for sale may have goods repaired if it be necessary.

(b) A consigns provisions to B at Calcutta, with directions to send them immediately to C, at Cuttack. B may sell the provisions at Calcutta, if they will not bear the journey to Cuttack without spoiling.


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