Section 189 of the Contract Act defines the scope of an agent's emergency authority as_________________?
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Answer: B. Unlimited agent can do all necessary act without principal permission
Explanation
Agency law grants representatives special powers to protect principal interests during sudden emergencies. Section 189 of the Contract Act allows an agent to take all necessary actions without principal permission. The broad scope of emergency authority covers reasonable steps taken to prevent financial loss. Emergency situations arise unexpectedly when communication with the principal is practically impossible. An agent acts with the diligence and care of a prudent person facing similar crisis conditions. Statutory agency rules balance operational flexibility with fiduciary duties owed to the principal.
This authority proves vital in commercial shipping and perishable goods management during transit crises. Principals are bound by reasonable emergency actions taken by their agents to safeguard property. Legal disputes in agency cases test whether the emergency truly justified bypassing prior consultations. Option A is incorrect because emergency authority explicitly overrides the requirement for prior permission. Option C is contradictory since emergency powers do not simultaneously depend on constant principal permission. Option D is incorrect because option B accurately captures the scope of agent emergency actions.
- Subject
- Law
- Category
- Judiciary and Law
- Topic
- —
- Difficulty
- medium
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