Chapter X - Agency
Section 228
Section 228: Inseparable excess of authority
A principal need not recognise a transaction where the agent’s unauthorised excess cannot be separated from the authorised part.
On this page
Need advice on Section 228?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where an agent does more than he is authorized to do, and what he does beyond the scope of his authority cannot be separated from what is within it, the principal is not bound to recognize the transaction.
Illustration
A authorizes B to buy 500 sheep for him. B buys 500 sheep and 200 lambs for one sum of 6,000 rupees. A may repudiate the whole transaction.
Rule and business relevance
The statutory illustration involves an authorised purchase of sheep combined with an unauthorised purchase of lambs for one total price.
Limits and related provisions
First establish the actual authority and inseparability. Do not ignore other possible bases such as ratification or principal-induced apparent authority.
Hypothetical business example
Hypothetical example: An agent authorised to buy one category of stock purchases a combined inseparable package including unauthorised stock. The principal examines the right not to recognise it.
Practical decision flow
Identify the original authority.
Establish the unauthorised excess and why it is inseparable.
Check any later ratification or other relevant authority rule.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the original authority.
- Establish the unauthorised excess and why it is inseparable.
- Check any later ratification or other relevant authority rule.
Avoid
- First establish the actual authority and inseparability. Do not ignore other possible bases such as ratification or principal-induced apparent authority.
Glossary
- Inseparable excess
- An unauthorised component that cannot be separated from the authorised transaction.
- Non-recognition
- The principal’s stated entitlement not to recognise that transaction.
Frequently asked questions
Is every excess automatically inseparable?
No. The transaction must be examined; section 227 treats separable parts differently.
What does the illustration emphasise?
A combined purchase for one sum beyond the authorised subject matter.
Can later conduct still matter?
Yes. Ratification and other applicable provisions require separate review.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026