Section 179 The Indian Contract Act, 1872
📜 Section 179 – The Indian Contract Act, 1872
Agent’s authority in an emergency
"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."
✅ Explanation:
This section gives emergency powers to an agent to act in the best interest of the principal when an urgent or unforeseen situation arises.
⚖️ Legal Principle:
The law presumes that the agent is empowered to take any action necessary to protect the principal from loss, even if the principal has not explicitly authorized it, as long as:
It’s an emergency,
The act is reasonable, and
A prudent person would have acted similarly in such a situation.
🧾 Illustration:
Suppose A is B’s agent to transport goods from Mumbai to Delhi. During the journey, due to floods, the goods are in danger of being destroyed. A sells the goods at a nearby town to minimize loss.
➡️ This act is valid under Section 179, even though B had not specifically authorized the sale.
🔍 Key Elements:
| Element | Description |
|---|---|
| Agent | Person authorized to act for the principal |
| Emergency | A situation where immediate action is necessary |
| Protect principal | The agent must act in the principal’s best interest |
| Standard: Ordinary prudence | What a normal, reasonable person would do in that situation |
📚 Case Law Reference (Illustrative):
Great Northern Railway Co. v. Swaffield (1874)
In this English case, an agent left a horse at a livery stable in an emergency without principal’s prior instruction. The principal had to pay the charges.
➡️ It was held the agent acted reasonably and within implied authority due to the emergency.
RELATED Blog
0 comments