Section 249 The Indian Contract Act, 1872
Section 249 of The Indian Contract Act, 1872 deals with the rights of an agent when acting without principal’s authority.
📜 Section 249 – Agent acting without principal’s authority
"Where an agent acts without authority or beyond his authority, the agent is personally liable to a third party, unless the principal ratifies the act."
✅ Explanation:
If an agent acts without the authority given by the principal, or exceeds the scope of his authority,
The agent is personally responsible for any contract or liability incurred toward the third party.
However, if the principal later ratifies (approves) the agent’s unauthorized act, the liability shifts to the principal.
📌 Illustration:
A appoints B as his agent to buy goods worth up to ₹50,000.
B buys goods worth ₹1,00,000 without A’s approval.
B will be personally liable to pay the excess ₹50,000 to the seller, unless A ratifies the purchase.
This section protects third parties and clarifies that agents must act strictly within their authority or risk personal liability.
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