Indian Contract Act,1872

Act No : 9

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Section : Principal how far bound, when agent exceeds authority

227.Principal how far bound, when agent exceeds authority.-Whenan agent does more than he is authorized to do, and when the part ofwhat he does, which is within his authority, can be separated from thepart which is beyond his authority, so much only of what he does as iswithin his authority is binding as between him and his principal.--------------------------------------------------------------------- 1 See s. 24, supra. 2 Cf. the Indian Fatal Accidents Act, 1855 (13 of 1855).---------------------------------------------------------------------73 Illustration A, being owner of a ship and cargo, authorizes B to procure aninsurance for 4,000 rupees on the ship. B procures a policy for 4,000rupees on the ship, and another for the like sum on the cargo. A isbound to pay the premium for the policy on the ship, but not thepremium for the policy on the cargo.

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