Indian Contract Act Section 228 — Principal not bound when excess of agent’s authority is not separable

CHAPTER X AGENCY — Effect of agency on contracts with third persons

Commercial / Corporate

Summary

If an agent does more than they were authorised to do, and the extra part cannot be separated from the authorised part, then the principal does not have to accept or recognise the whole transaction. In other words, when the unauthorised action is so mixed up with the authorised action that you cannot split them apart, the principal is not bound by any of it.

Official Text

Where an agent does more than he is authorized to do, and what he does beyond the scope of his authority cannot be separated from what is within it, the principal is not bound to recognize the transaction. Illustration