Legal Question in Business Law in India

28.04.2012

Dear Sir / Madam,

Section 189 of the Indian Contract Act, 1872 - Agent's authority in an emergency.

An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.

Illustrations :

(a) An agent for sale may have goods repaired if it be necessary.

(b) A consigns provisions to B at Kolkata, with directions to send them immediately to C, at Cuttack. B may sell the provisions at Kolkata, if they will not bear the journey to Cuttack without spoiling.

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Regards,