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        Indian Laws

        Section 227 - Principal how for bound, when agent exceeds authority

        Indian Contract Act, 1872
        Chapter Xf
        Effect of agency on contract with third persons

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        Agent exceeding authority: only the authorized portion of an agent's acts binds the principal, not unauthorized acts. When an agent does both authorized and unauthorized acts and the authorized part can be separated from the unauthorized part, only those acts within the agent's authority bind the principal; acts beyond authority do not create principal liability.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Agent exceeding authority: only the authorized portion of an agent's acts binds the principal, not unauthorized acts.

                              When an agent does both authorized and unauthorized acts and the authorized part can be separated from the unauthorized part, only those acts within the agent's authority bind the principal; acts beyond authority do not create principal liability.


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