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Section 187, Contract Act 1872: Definitions Of Express & Implied Authority

Section 187 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Definitions of express and implied authority', is reproduced hereunder:—

“An authority is said to be express when it is given by words, spoken or written. An authority is said to be implied when it is to be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case.

Illustration

A owns a shop in Serampur, living himself in Calcutta, and visiting the shop occasionally. The shop is managed by B, and he is in the habit of ordering goods from C in the name of A for the purposes of the shop, and of paying for them out of A's funds with A' s knowledge. B has an implied authority from A to order goods from C in the name of A for the purposes of the shop.”

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