Contracts Act · s 180

Suggest a correction

Tell us what is wrong in this text. We check every suggestion against the official version before we change anything.

What is wrong?Wrong or mistyped wordsWrong structure or numberingWrong title or detailsText that appears twice

What should change, and whyUp to 2,000 characters.The text as it should read (optional)Edit the text above. Up to 20,000 characters.Where you checked it (optional)A link to the official version, if you have one.

The text as we hold it

Open the official text

s 180Principal how far bound when agent exceeds authority

When an agent does more than he is authorised 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.

Illustration

A, being owner of a ship and cargo, authorises B to procure an insurance for $4,000 on the ship. B procures a policy for $4,000 on the ship and another for the like sum on the

Contracts cargo. A is bound to pay the premium for the policy on the ship, but not the premium for the policy on the cargo.