Extent of agent's authority
Section 188 of the Indian Contract Act, 1872 deals with extent of agent's authority. An agent, having an authority to do an act, has authority to do every lawful thing which is necessary in order to do such act. The Act came into force on 01 Sep 1872.
An agent, having an authority 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, or usually done in the course, of conducting such business.
Illustrations
(a) A is employed by B, residing in London, to recover at Bombay a debt due 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.
(b) A constitutes B his agent to carry on his business of a shipbuilder. B may purchase timber and other materials, and hire workmen, for the purpose of carrying on the business.
Section 188, The Indian Contract Act, 1872 (Act 9 of 1872).
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The impugned order of the learned Judge failed to appreciate that issuance of a Power of Attorney cannot by law constitute an ingredient of an offence under section 499, IPC since agents, under section 188 of the Indian Contract Act, 1872, are authorised to do only lawful acts; and, as a corollary, execution of such power of attorney did not amount to authorisation or consent given to Aggarwal to commit any alleged act of defamation. - ii. The learned Judge erred in not considering that a writ petition instituted …
Questions about Section 188
What does Section 188 of the Indian Contract Act deal with?
Section 188 of the Indian Contract Act is headed "Extent of agent's authority". An agent, having an authority to do an act, has authority to do every lawful thing which is necessary in order to do such act.
How do I find court cases under Section 188 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 188, section 188 Contract Act, section 188 of the Indian Contract Act. People searching for it also type indian contract act section 188. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 188 of the Indian Contract Act come into force?
Section 188 of the Indian Contract Act, cited as Contract Act 188, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.