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Section 188, Contract Act 1872: Extent Of Agent's Authority

Section 188 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Extent of agent's authority', is reproduced hereunder:—

“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.

Illustrations

(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 his agent to carry on his business of a shipbuilder. B may purchase timber and other materials, and hire workmen , for the purposes of carrying on the business.”

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