Section 109 The Indian Contract Act, 1872
Section 109 – Indian Contract Act, 1872
Title: Agent’s authority in an emergency
Bare Act Language:
Section 109. Agent’s authority in an emergency:
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.
🔍 Explanation:
This section empowers an agent to act beyond express authority in situations of emergency, if the actions are:
Intended to protect the principal from loss, and
What a reasonable and prudent person would do for their own benefit under similar conditions.
This is an implied authority, recognized to handle unforeseen and urgent circumstances.
🧑⚖️ Example:
A is an agent of B, who owns a ship. During a storm, A finds that unless the cargo is sold at the nearest port, the ship may be lost. Even though B did not expressly authorize this, A can sell the cargo to prevent loss. This is within A’s authority under Section 109.
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