Daily Email Newsletter (Sign-up Free)

Section 222, Contract Act 1872: Agent To Be Indemnified Against Consequences Of Lawful Acts

Section 222 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Agent to be indemnified against consequences of lawful acts', is reproduced hereunder:—

“The employer of an agent is bound to indemnify him against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him.

Illustrations

(a) B, at Singapore, under instructions from A of Calcutta, contracts with C to deliver certain goods to him. A does not send the goods to B, and C sues B for breach of contract. B informs A of the suit, and A authorizes him to defend the suit. B defends the suit, and is compelled to pay damages and costs, and incurs expenses. A is liable to B for such damages, costs and expenses.

(b) B, a broker at Calcutta, by the orders of A, a merchant there, contracts with C for the purchase of 10 casks of oil for A. Afterwards A refuses to receive the oil, and C sues B. B informs A, who repudiates the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses. A is liable to B for such damages, costs and expenses.”

No comments:

Post a Comment

In comment with "Name/Url" option, only Name is mandatory to be filled.