Indian Contract Act Section 223 — Agent to be indemnified against consequences of acts done in good faith
CHAPTER X AGENCY — Principal’s duty to agent
Commercial / Corporate
Summary
Where one person hires another to do something, and the hired person carries out that act honestly and in good faith, the person who did the hiring must compensate the hired person for any harmful results that come from doing the act. This is true even if the act ends up injuring the legal rights of someone else who is not part of the arrangement.
Official Text
Where one person employs another to do an act, and the agent does the act in good faith, the employer is liable to indemnify the agent against the consequences of that act, though it cause an injury to the rights of third persons. Illustrations