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A owns a shop in Serampore, living himself in Calcutta, and visiting the shop occasionally. The shop is…

This is the illustration to Section 187 of the Indian Contract Act, 1872 on implied authority: since A knowingly permits B to order goods from C in A's name and pay for them…

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A owns a shop in Serampore, living himself in Calcutta, and visiting the shop occasionally. The shop is managed by B, and he is in the habit of ordering goods from C in the name of A for the purposes of the shop, and of paying for them out of A's funds with A's knowledge.

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Correct answer C

This is the illustration to Section 187 of the Indian Contract Act, 1872 on implied authority: since A knowingly permits B to order goods from C in A's name and pay for them out of A's funds, "B has an implied authority from A to order goods from C in the name of A", inferred from the circumstances and the ordinary course of dealing.

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