Section 147

Section 147 of the Indian Contract Act, 1872, defines express and implied authority. Express authority is defined as 'authority which is given by the principal to the agent in explicit terms.' Implied authority, on the other hand, is defined as 'authority which is implied by the circumstances of the case, the conduct of the parties, and the ordinary course of dealing.' The section emphasizes the importance of understanding the distinction between express and implied authority, as an agent's actions are binding on the principal only to the extent of his authority. 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.