Section 228 The Indian Contract Act, 1872
Section 228 – The Indian Contract Act, 1872
📜 Title: "Principal not bound when excess of agent’s authority is not separable"
Text of Section 228:
"Where an agent does more than he is authorised to do, and what he does beyond the scope of his authority cannot be separated from what is within it, the principal is not bound to recognize the transaction at all."
🔍 Explanation of Section 228:
This section deals with situations where an agent exceeds their authority and the authorized and unauthorized parts of their act cannot be separated.
🧠 Key Points:
Exceeding Authority:
If the agent performs acts that go beyond the instructions or authority given by the principal.
Inseparable Acts:
If the authorized and unauthorized acts are so mixed that they cannot be separated,
Then the principal is not bound by any part of the act — not even the part that was within authority.
Legal Effect:
The entire transaction is invalid against the principal if it is indivisible and includes unauthorized action.
⚖️ Illustration (as per the Act):
A authorizes B to buy 500 sheep for him.
B buys 500 sheep and 200 goats.
The purchase of sheep and goats is made in one single contract.
Since the purchase of goats was unauthorized, and the contract can’t be divided, A is not bound to accept any part of the transaction.
✅ Conclusion:
Section 228 protects the principal when an agent oversteps boundaries in a way that can’t be cleanly separated from the original authority.
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