Indian Contract Act Section 227 — Principal how far bound, when agent exceeds authority
CHAPTER X AGENCY — Effect of agency on contracts with third persons
Commercial / Corporate
Summary
When an agent does more than they were authorised to do, and the part of their action that falls within their authority can be separated from the part that goes beyond it, then only the authorised part is binding between the agent and the principal. The unauthorised part is not binding on the principal.
Official Text
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