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Extent of Agent's Authority
It is governed by two principles:
Sec. 188: Agents authority in normal circumstances.
Agent has the power and authority to do all the acts lawful necessary in the normal
circumstances in discharge of his function Agent's authority in emergency.
Agent has the authority in an emergency to do all such acts as a man:- ordinary
prudence for protecting his principal from losses under site circumstances. It includes:
(a) Actual / Real Authority.
(b) Ostensible / Apparent Authority.
Classes of Agents
Special Agent General Agent
Appointed to do any Appointed for doing all
specific act a function given by principal
does not have unlimited authority Can be assumed to have
act outside its authority Unlimited authority
does not binds the principal.
Other Types of agents:
Other types of agents
Sub- Agent Substituted Agent Mercantile Agent
Sub Agent
Note:
As per Sec 190,
Sub-agent's appointment is not lawful as the agent is a delegate and delegate cannot
further delegate.
As per Sec. 191,
A sub-agent is a person-
(i) employed by, and
(ii) acting under the control of the original agent in the business of Agency.
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