According to Section 189 of the Contract Act, what extent of authority does an agent have during an emergency?

Show Answers

Restricted and requires approval from the principalUnrestricted; the agent may perform all essential actions without the principal's consentBoth restricted and unrestricted depending on the situationNone of the aboveNot applicable

Explanation

Under Section 189 of the Contract Act, an agent possesses unlimited authority in emergency situations, allowing them to take all necessary actions without seeking prior permission from the principal. This is to ensure timely and effective response when immediate decisions are crucial.