Section 253 The Indian Contract Act, 1872
Section 253 – The Indian Contract Act, 1872
Title: Liability of Principal for acts of Agent within authority
📜 Bare Act Language:
"When an agent acts within the scope of his authority, the principal is liable for all acts done by the agent in the exercise of such authority."
🔍 Explanation:
This section explains that:
When an agent acts within the authority given by the principal,
The principal is bound and liable for all acts, contracts, or consequences arising from such actions.
This means the principal must honor and be responsible for the agent’s lawful actions done on their behalf.
🧠 Key Points:
Agent must act within the scope of authority.
Acts beyond authority do not bind the principal (except in some exceptions).
Protects third parties dealing with agents acting within their authority.
⚖️ Example:
A appoints B as an agent to buy goods worth ₹1 lakh. B purchases goods within this limit.
→ A must pay for the goods since B acted within authority.
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