ICA Section 188: Extent of agent's authority
Indian Contract Act, 1872 · Chapter 10: Agency
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188. Extent of agent's authority. An agent having an authority to do an act has authority to do every lawful thing which is necessary in order to do such act. An agent having an authority to carry on a business has authority to do every lawful thing necessary for the purpose, or usually done in the course, of conducting such business.
Illustrations
(a) A is employed by B, residing in London, to recover at Bombay a debt due to B. A may adopt any legal process necessary for the purpose of recovering the debt, and may give a valid discharge for the same.
(b) A constitutes B his agent to carry on his business of a ship-builder. B may purchase timber and other materials, and hire workmen, for the purpose of carrying on the business.
Official reference: India Code, Legislative Department — checked: 29 September 2026.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 182. "Agent" and "Principal" defined
- 183. Who may employ agent
- 184. Who may be an agent
- 185. Consideration not necessary
- 186. Agent's authority may be expressed or implied
- 187. Definitions of express and implied authority
- 189. Agent's authority in an emergency
- 190. When agent cannot delegate
- 191. "Sub-agent" defined
- 192. Representation of principal by sub-agent properly appointed
- 193. Agent's responsibility for sub-agent appointed without authority
- 194. Relation between principal and person duly appointed by agent to act in business of agency
- 195. Agent's duty in naming such person
- 196. Right of person as to acts done for him without his authority: effect of ratification
- 197. Ratification may be expressed or implied
- 198. Knowledge requisite for valid ratification
- 199. Effect of ratifying unauthorized act forming part of transaction
- 200. Ratification of unauthorized act cannot injure third person
- 201. Termination of agency
- 202. Termination of agency, where agent has an interest in subject-matter
- 203. When principal may revoke agent's authority
- 204. Revocation where authority has been partly exercised
- 205. Compensation for revocation by principal, or renunciation by agent
- 206. Notice of revocation or renunciation
- 207. Revocation and renunciation may be expressed or implied
- 208. When termination of agent's authority takes effect as to agent, and as to third persons
- 209. Agent's duty on termination of agency by principal's death or insanity
- 210. Termination of sub-agent's authority
- 211. Agent's duty in conducting principal's business
- 212. Skill and diligence required from agent
- 213. Agent's accounts
- 214. Agent's duty to communicate with principal
- 215. Right of principal when agent deals, on his own account, in business of agency without principal's consent
- 216. Principal's right to benefit gained by agent dealing on his own account in business of agency
- 217. Agent's right of retainer out of sums received on principal's account
- 218. Agent's duty to pay sums received for principal
- 219. When agent's remuneration becomes due
- 220. Agent not entitled to remuneration for business misconducted
- 221. Agent's lien on principal's property
- 222. Agent to be indemnified against consequences of lawful acts
- 223. Agent to be indemnified against consequences of acts done in good faith
- 224. Non-liability of employer of agent to do a criminal act
- 225. Compensation to agent for for injury caused by principal's neglect
- 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 unauthorised acts were authorised
- 238. Effect, on agreement, of misrepresentation or fraud by agent