Section 157 The Indian Contract Act, 1872
Section 157 of the Indian Contract Act, 1872 pertains to agency, specifically about when an agency is deemed to be created in the course of a usual business.
🔹 Section 157 – Agent’s authority in an emergency
"In an emergency, an agent has authority 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."
🔍 Explanation:
If an emergency arises, and the principal cannot be consulted, the agent has the authority to act beyond express instructions to protect the principal’s interests.
The agent’s actions must be:
In good faith,
Within what a reasonable and prudent person would do for himself,
Necessary to avoid loss or damage to the principal.
📌 Example:
A sends goods to B through his agent C.
During transport, a sudden storm threatens the goods.
C, to save the goods, pays for emergency storage or shifts them to a safer location.
This action is authorized under Section 157 – C acted like a prudent person would in an emergency.
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