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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.



Section 186 - Agent's authority may be express or implied

Section 187 - Definitions of express and implied authority

Section 188 - Extent of agent's authority

Section 189 - Agent's authority in an emergency

Section 190 - When agent cannot delegate


Section 191 - Sub-agent defined

Section 192 - Representation of principal by sub-agent properly appointed

Section 193 - Agent's responsibility for sub-agent appointed without authority

Section 194 - Relation between principal and person duly appointed by agent to act in business of agency

Section 195 - Agent's duty in naming such person


Section 196 - Right of person as to acts done for him without his authority

Section 197 - Effect of ratification Ratification may be expressed or implied

Section 198 - Knowledge requisite for valid ratification

Section 199 - Effect of ratifying unauthorized act forming part of a transaction

Section 200 - Ratification of unauthorized act cannot injure third person

Revocation of Authority

Section 201 - Termination of agency

Section 202 - Termination of agency, where agent has an interest in subject-matter

Section 203 - When principal may revoke agent's authority

Section 204 - Revocation where authority has been partly exercised

Section 205 - Compensation for revocation by principal, or renunciation by agent

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