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Indian Contract Act, 1872

Section 141

Implied Agency

Quick Answer Reference: Section 141 Contract Act

  • Provision: Section 141 of Contract Act
  • Act: Indian Contract Act, 1872
  • Classification: contract
  • Jurisdiction: India
Statutory Content

What does Section 141 of Contract Act say?

Section 141 of the Indian Contract Act, 1872, states that 'an agent has authority to do every lawful thing which is necessary for, and incidental to, the purpose of his employment.' This means that an agent's authority is not limited to express authority but also includes implied authority. Implied authority arises from the circumstances of the case, the conduct of the parties, and the ordinary course of dealing. The section emphasizes that an agent's authority is co-extensive with the purpose of his employment, and he can do all such acts as are necessary for, or incidental to, the attainment of that purpose. The courts have interpreted this section to mean that an agent's implied authority is not limited to the specific tasks assigned to him but also extends to all such acts as are reasonably necessary to carry out his duties. For instance, if an agent is appointed to manage a business, his implied authority would include the power to enter into contracts, employ staff, and take other necessary steps to run the business efficiently.

Indian StandardSection 141, Indian Contract Act, 1872
Bluebook (21st ed.)Indian Contract Act, 1872, § 141 (India)
Court Pleading StandardSection 141 of the Indian Contract Act, 1872
Canonical Web linkhttps://nyaya.cloud/acts/indian-contract-act-1872/141

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗
People Also Ask (PAA)

Common Questions about Section 141 Contract Act

What is Section 141 of Contract Act?

Section 141 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Implied Agency". The section states: Section 141 of the Indian Contract Act, 1872, states that 'an agent has authority to do every lawful thing which is necessary for, and incidental to, the purpose of his employment....

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