Section 188 The Indian Contract Act, 1872
📜 Section 188 – The Indian Contract Act, 1872
🔍 Section 188 – Extent of Agent’s Authority
"An agent having authority to do an act has authority to do every lawful thing which is necessary in order to do such act."
✅ Explanation:
This section defines the implied authority of an agent. If a principal gives an agent authority to do a particular act, the law assumes the agent also has the authority to do everything lawful and necessary to carry out that act effectively.
🔑 Key Points:
The authority granted to the agent includes:
The main act authorized by the principal.
All lawful steps required to complete that act.
This is known as the "doctrine of implied authority."
🧠 Illustration:
If A appoints B as his agent to sell goods, B is also authorized to:
Enter into contracts for sale,
Give delivery of goods,
Accept payment on A's behalf,
Do other necessary acts related to the sale.
Even if not specifically written, these are implied powers under Section 188.
🧑⚖️ Relevant Case Law:
Pannalal Jankidas v. Mohanlal (AIR 1951 SC 144)
The court recognized that an agent has the authority to do what is ordinarily necessary to carry out the task entrusted by the principal.
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