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Report No. 13

134. Section 183.-

Section 183 appears to be too narrow. It is confined to natural persons and would exclude corporations. Further, like section 182, it contemplates only an express appointment by the principal. We propose that the marginal note to section 183 be altered to read: 'Capacity to act as principal' and the section be amended to provide that the capacity to contract or do any other act by means of an agent is co-extensive with the capacity of the principal to make the contract or do the act which he is authorised to make or do. It would then be clear that in the case of a corporation an act beyond the scope of its memorandum of association will be beyond its capacity.

Indian Contract Act, 1872 Back

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