Q-6: Explain the extent of agent authority.
Ans: EXTENT OF AGENT’S AUTHORITY
An agent’s authority means the capacity of the agent to bind his principal.
MEANING OF EXTENT OF AGENT’S AUTHORITY
Extent of agent authority means the scope of authority of an agent. In other words, it means what a person can do as an agent behalf of his principal. Extent of agent’s authority may be discussed under normal circumstances and emergency circumstances.
EXTENT AGENTS AUTHORITY UNDER NORMAL CIRCUMSTANCES [SECTION 188]
An agent having to do an act has authority to do every lawful thing, which is necessary in order to do such act. An agent having an authority to carry on a business, has authority to do every lawful thing necessary for the purpose ol usually done in the course of conducting such business?
A is employed by B, residing in London, to recover at Karachia debt to B. A may adopt any legal process necessary for the purpose of recovering the debt, and may give a valid discharge for the same.
EXTENT OF AGENT’S AUTHORITY IN EMERGENCY [SECTION 189]
An agent has authority, in an emergency; to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.
A consigns provision to B atKarachi, with direction to send them immediately to C, atLahore. B may sell the provision atKarachi, if they not bear the journey toLahorewith out spoiling.