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Report No. 13

141. Section 188.-

Section 188 is divided into two parts. The first deals with 'authority to do an act', that is, acts in general, and the other deals with the authority to carry on business-an activity consisting of particular kinds of aces. The first part omits to say that the authority of an agent includes the authority to do things which are ordinarily incidental to the performance of the act expressly authorised. In other words, the extent of the authority is confined to doing things necessary for the performance of the act expressly authorised. In our opinion, the first part of the section should be simplified and the omission mentioned above should be supplied.

142. In our opinion, the second part of the section may be modified1 to the following effect: Every agent has implied authority to act, in the execution of his express authority, according to the usage and custom prevailing in the market or in the business in which he is employed.

1. Vide section 188(2) App I.

143. Section 189.-

No change is necessary in section 189.

Indian Contract Act, 1872 Back

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