Indian Contract Act Section 188 — Extent of agent’s authority

CHAPTER X AGENCY — Appointment and authority of agents

Commercial / Corporate

Summary

An agent who is authorised to do a specific act can also do every lawful thing that is necessary to complete that act. This means the agent’s power extends to any legal step that is required to actually carry out the task they were asked to do.

If an agent is authorised to run a business, they can do every lawful thing that is necessary for running that business, or that is usually done in the ordinary course of conducting such a business. This covers the routine and essential actions involved in managing the business.

Official Text

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