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A shop owner tells Maya to order stock. The owner regularly lets Nikhil order stock for the shop…

Section 187 allows spoken instructions to give express authority. The shop owner’s directions to Maya are express. The circumstances, including the owner’s repeated…

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A shop owner tells Maya to order stock. The owner regularly lets Nikhil order stock for the shop without giving Nikhil express instructions. Under sections 186 and 187 of the Indian Contract Act, 1872, how are their respective authorities best classified?

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Answer and explanation

Correct answer C

Section 187 allows spoken instructions to give express authority. The shop owner’s directions to Maya are express. The circumstances, including the owner’s repeated acquiescence in Nikhil’s orders, support an inference of implied authority.

Option feedback

Option A

Maya receives a spoken direction, which can create express authority. Nikhil’s authority is inferred from the circumstances.

Option B

Maya receives a spoken direction. Nikhil has no express instruction and his authority is inferred from the owner’s conduct.

Option C

Maya’s authority follows from spoken instructions. The owner’s pattern of permitting Nikhil to order stock supports implied authority.

Option D

The circumstances support implied authority for Nikhil. The explicit spoken direction to Maya supports express authority.

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