Kamala purchased one bag of raw rice from the seller on credit as her husband on office earning Rs.25,000 per month left the house of urgent office duty without making allowance to his wife by over sight. He returned after one month and refused to settle the bills with the seller. Is the seller entitled to any remedy?
Sec. 187 of the Indian Contract Act, 1872, defines (Express and) Implied authority of Agents. An authority is said to be implied when it is to be inferred from the circumstances of the case and things spoken or written or the ordinary course of dealing may be accounted circumstances of the case.
It means, the agency is inferred from circumstances. It arises from the conduct, situation or relationship of parties. One of the types of agency by implied agreement is ‘agency by co-habitation’.
When a man and a woman live as husband and wife, then the wife can get all necessaries on credit from a shopkeeper. The husband is liable for the articles sold to the wife subject to the fact that they must be living together in a domestic establishment of their own.
In the case cited above, Kamala purchased one bag of rice on credit as her husband was away from home on official work and she was not having money for paying the shopkeeper. As per the provisions of Sec. 187 of the Indian Contract Act, 1872, the wife has implied authority to act on behalf of her husband and the husband is liable to pay for any credit purchase made by her in respect of day to day necessaries.
Thus, the shopkeeper is entitled to proceed against Kamala’s husband legally by filing a case for recovery of the price of one bag of rice.