THE INDIAN CONTRACT ACT, 1872

Principal not bound when excess of agent’s authority is not separable Where an agent does more than he is authorized to do, and what he does beyond the scope of his authority cannot beseparated from what is within it, the principal is not bound to recognize the transaction.IllustrationA authorizes B to buy 500 sheep for […]

Principal how far bound, when agent exceeds authorit 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

Enforcement and consequences of agent’s contracts Contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner, and will have the same legal consequences, as if the contracts had been entered into and the acts done by theprincipal in person.Illustrations(a) A buys goods from

Compensation to agent for injury caused by principal’s neglect The principal must make compensation to his agent in respect of injury caused to such agent by the principal‟s neglect or want of skill.IllustrationA employs B as a bricklayer in building a house, and puts up the scaffolding himself. The scaffolding is unskilfully put up,and B

Non-liability of employer of agent to do a criminal act Where one person employs another to do an act which is criminal, the employer is not liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of that Act1.Illustrations(a) A employs B to beat C, and agrees

Agent to be indemnified against consequences of acts done in good faith Where one person employs another to do an act, and the agent does the act in good faith, the employer is liable toindemnify the agent against the consequences of that act, though it cause an injury to the rights of thirdpersons.Illustrations(a) A, a

Agent to be indemnified against consequences of lawful acts The employer of an agent is bound to indemnify him against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him.Illustrations(a) B, at Singapur, under instructions from A of Calcutta, contracts with C to deliver certain goods to

Agent’s lien on principal’s property In the absence of any contract to the contrary, an agent is entitled to retain goods, papers and other property, whether movable or immovable of the principal received by him, until the amount due to himself for commission, disbursements and services in respect of the same has been paid or

Agent not entitled to remuneration for business misconducted An agent who is guilty of misconduct in the business of the agency, is not entitled to any remuneration in respect of that part of the business which he has misconducted.Illustrations(a) A employs B to recover, 1,00,000 rupees from C, and to lay it out on good

When agent’s remuneration becomes due In the absence of any special contract, payment for the performance of any act is not due to the agent until the completion of such act; but an agent may detain moneys received by him on account of goods sold, although the whole of the goods consigned to him for