Section 189 The Indian Contract Act, 1872
Section 189 of The Indian Contract Act, 1872 relates to the agent's authority in an emergency.
📜 Section 189 – 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 empowers an agent to act beyond his usual authority in emergency situations, if such actions are necessary to prevent loss to the principal.
The agent may take reasonable steps, even if not expressly authorized.
The standard for such action is what a reasonable and prudent person would do for himself in that emergency.
📌 Illustration:
A is an agent of B, who owns a warehouse.
During A’s visit, a fire breaks out.
A calls the fire brigade and authorizes emergency repairs to protect the building.
Even if A was not directly authorized to do so, his actions are valid under Section 189, as they were done in an emergency to protect B’s interests.
This section ensures that agents are not penalized for acting beyond authority when the situation demands urgent action to prevent harm or loss.
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