Indian Contract Act Section 222 — Agent to be indemnified against consequences of lawful acts

CHAPTER X AGENCY — Principal’s duty to agent

Commercial / Corporate

Summary

The employer of an agent is legally required to compensate the agent for any losses or harm that result from lawful actions the agent takes while carrying out the authority given to them. This means if the agent acts within the scope of their assigned duties and does so legally, the employer must cover the consequences, such as costs or damages, that arise from those actions.

Official Text

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