Section 193 The Indian Contract Act, 1872
Section 193 – The Indian Contract Act, 1872
Title: Agent to be indemnified against consequences of lawful acts
📜 Bare Act Language:
“Where one person employs another to do an act, and the agent does that act in good faith, the employer is liable to indemnify the agent against the consequences of that act, though it causes an injury to the rights of third persons.”
🔍 Explanation:
This section provides protection to agents who act in good faith on behalf of their principal (employer):
If an agent does something lawfully and in good faith under the authority of the principal,
And that act unintentionally harms a third party,
The principal must indemnify (compensate) the agent for any loss or liability resulting from it.
🧠 Key Points:
The act must be lawful and done in good faith.
The agent is not personally liable for consequences of such acts.
The principal bears the responsibility for losses arising from those acts.
⚖️ Example:
A (principal) asks B (agent) to sell certain goods. B, acting in good faith, sells goods that unknowingly belong to someone else.
→ If the rightful owner sues B, then A must indemnify B for the loss or legal consequences.
📚 Related Sections:
Section 222 – Agent to be indemnified for lawful acts.
Section 194 – Responsibility of principal when agent acts beyond authority.
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