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An agent acting on behalf of a principal binds the principal by his acts done:
AOnly within the scope of his actual authority
BOnly on producing power of attorney
COnly if signed by the principal
DWithin actual authority or apparent (ostensible) authority
Answer & Solution
Correct answer: D. Within actual authority or apparent (ostensible) authority
1. Sections 188 and 237 — principal is bound by acts done within actual OR ostensible (apparent) authority of the agent.
2. Third parties dealing in good faith with ostensible authority are protected.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Indian Contract Act 1872_