BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A principal is bound only for such acts of the agent which are within the authority of the agent. If the agent’s act is in excess of the authority, the principal is not liable for the same.

Detailed explanation-2: -Agency by Ratification (Sections 169-200): Where a person not having any authority act as agent, or act beyond its authority, then the principal is not bound by the contract with the agent in respect of such authority. But the principal can ratify the agent’s transaction and accept liability.

Detailed explanation-3: -(1) An Agent that acts without authority or exceeds his authority is, failing ratification by the Principal, liable for damages that will place the third party in the same position as if the Agent had acted with authority and not exceeded his authority.

Detailed explanation-4: -If an agent acts within the scope of his/her authority, a principal is bound by the act of his/her agent. Moreover, a principal is responsible for any action or inaction by the principal’s agent.

Detailed explanation-5: -When an agent does more than he is authorized to do, and when the part of what he does, which is within his authority, can be separated from the part which is beyond his authority, so much only of what he does as is within his authority is binding as between him and his principal.