Indian Contract Act : Extent of agent's authority Indian Bare Acts :

Indian Contract Act,1872

Act No : 9

Section : Extent of agent's authority

188. Extent of agent's authority.-An agent having an authority todo an act has authority to do every lawful thing which is necessary inorder to do such act. An agent having an authority to carry on a business has authorityto do every lawful thing necessary for the purpose, or usually donein the course, of conducting such business. Illustrations (a) A is employed by B, residing in London, to recover at Bombaya debt due to B. A may adopt any legal process necessary for thepurpose of recovering the debt, and may give a valid discharge for thesame. (b) A constitutes B his agent to carry on his business of aship-builder. B may purchase timber and other materials, and hireworkmen, for the purpose of carrying on the business.