Principal how far bound, when agent exceeds authority
Chapter 11: Agency
When an agent does more than he is authorized to do, and when the part of what he does, which is within his authority, can be separated from the part which is beyond his authority, so much only of what he does as is within his authority is binding as between him and his principal.
Illustration.
A, being owner of a ship and cargo, authorizes B to procure an insurance for 4,000 rupees on the ship. B procures a policy for 4,000 rupees on the ship, and another for the like sum on the cargo. A is bound to pay the premium for the policy on the ship, but not the premium for the policy on the cargo.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 224Non-liability of employer of agent to do a criminal act
- 225Compensation to agent for injury caused by principal‟s neglect
- 226Enforcement and consequences of agent‟s contracts
- 228Principal not bound when excess of agent‟s authority is not separable
- 229Consequences of notice given to agent
- 230Agent cannot personally enforce, nor be bound by, contracts on behalf of principal