Section 188 – THE INDIAN CONTRACT ACT, 1872

Extent of agent’s authority

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

1. See, however, the Registration Act, 1908 (16 of 1908), s. 33; see also the Code of Civil Procedure, 1908 (5 of 1908), Sch. I,
Order III, rule 4.
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(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 purpose of carrying on the business.

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Practice area's of B K Goyal & Co LLP

Company Registration Services in major cities of India

Complete CA Services

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