Indian Contract Act Section 189 — Agent’s authority in an emergency
CHAPTER X AGENCY — Appointment and authority of agents
Commercial / Corporate
Summary
An agent has the authority, during an emergency, to take any actions needed to protect the principal from loss, as long as those actions are what a reasonably careful person would do for themselves in the same situation. This means the agent can act beyond their normal instructions when a sudden crisis arises and immediate steps are necessary to prevent harm to the principal’s interests. The standard is ordinary prudence, so the agent must act sensibly and in good faith, just as any sensible person would to safeguard their own property or affairs under similar urgent circumstances.
Official Text
An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances. Illustrations