Indian Contract Act Section 225 — Compensation to agent for injury caused by principal’s neglect

CHAPTER X AGENCY — Principal’s duty to agent

Commercial / Corporate

Summary

The principal must compensate the agent for any injury the agent suffers because of the principal’s neglect or lack of skill. This means if the principal fails to act carefully or competently, and that failure directly harms the agent, the principal is required to pay for that harm.

Official Text

The principal must make compensation to his agent in respect of injury2caused to such agent by the principal’s neglect or want of skill. Illustration