R is the wife of P. She purchased sarees on credit from Nalli. Nalli demanded the amount from P. P refused. Nalli filed a suit against P for the said amount. Decide in the light of provisions of the Indian Contract Act, 1872, whether Nalli would succeed.
The position of husband and wife is special and significant case of implied authority. According to the Indian Contract Act 1872, where the husband and wife are living together in a domestic establishment of their own, the wife shall have an implied authority to pledge the credit of her husband for necessaries. However, the implied authority can be challenged by the husband only in the following circumstances. \n(1) The husband has expressly forbidden the wife from borrowing money or buying goods on credit.\n(2) The articles purchased did not constitute necessities.\n(3) Husband had given sufficient funds to the wife for purchasing the articles she needed to the knowledge of the seller.\n(4) The creditor had been expressly told not to give credit to the wife. \nFurther, where the wife lives apart from husband without any of her fault, she shall have an implied authority to bind the husband for necessaries, if he does not provide for her maintenance. \nSince, none of the above criteria is being fulfilled; Nalli would be successful in recovering its money.
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