Page 56 - 01. Indian Contract Act, 1872

Eg.: Wife as an agent, where a married women lives with her husband, there is a
presumption that she has the authority to pledge his credit for necessaries.
This Presumption is not held where husband shows that –

(i) he had expressly warned the tradesman not to supply goods to his wife on his
credit,

(ii) he had expressly forbidden the wife to pledge his goods,
(iii) his wife was already supplied with sufficient articles

(iv) She was supplied with sufficient allowance Wife as an agent
(b) Agency by Holding out

 Under this the principal plays a positive role.
 It occurs when any one holds himself out as an agent of another

 It happens through a wilful conduct
 Eg. - In case of partnerships.

Sec. 189:
Agency by necessity

• In case of emergency, the agents can exceed their powers and can take all the
steps to minimise his principal's loss.

Agency by ratification
(a) The principal is not bound by the act of agent if the agent acts:

(i) On behalf of another without his consent or knowledge
(ii) exceeding his authority.

(b) Principal can create it by subsequent ratification.
(c) Also known as ex post facto agency i.e. agency arising after the event. (d)
Principal becomes bound.
Agency by ratification is possible if following conditions are satisfied:

(i) The act must have been done on behalf of the named or identifiable principal.
(ii) The principal must be in existence at the time of contract.

(iii) The principal must be competent to contract at the time of making the contract.
(iv) Principal must have full knowledge of the facts.

(v) Contract can be ratified only a3 a whole.
(vi) It can be done of a lawful contract.

(vii) It must be done within a reasonable time.
(viii) It should not cause any damages to a third party.

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