Section 148

Section 148 of the Indian Contract Act, 1872, states that 'an authority is said to be implied when it is implied by the circumstances of the case, the conduct of the parties, and the ordinary course of dealing.' This means that an agent's implied authority extends to all such acts as are reasonably necessary to carry out his duties. The section emphasizes the importance of understanding the scope of an agent's 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. For example, 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.