LawgistThe Indian Contract Act
227Principal how far bound, when agent exceeds authority
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
A, being owner of a ship and cargo, authorizes B to procure an insurance for 4,000 rupees on the ship. B procures a policy for 4,000 rupees on the ship, and another for the like sum on the cargo. A is bound to pay the premium for the policy on the ship, but not the premium for the policy on the cargo.
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Effect of agency on contracts with third persons
- 226 Enforcement and consequences of agent's contracts
- 227 Principal how far bound, when agent exceeds authority
- 228 Principal not bound when excess of agent's authority is not separable
- 229 Consequences of notice given to agent
- 230 Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231 Rights of parties to a contract made by agent not disclosed
- 232 Performance of contract with agent supposed to be principal
- 233 Right of person dealing with agent personally liable
- 234 Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235 Liability of pretended agent
- 236 Person falsely contracting as agent, not entitled to performance
- 237 Liability of principal inducing belief that agent's unauthorized acts were authorized
- 238 Effect, on agreement, of misrepresentation or fraud by agent
