Section 222 The Indian Contract Act, 1872
Section 222 – Indian Contract Act, 1872
Title: Agent to be indemnified against consequences of lawful acts
Bare Act Language:
Section 222.
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.
🔍 Explanation:
This section ensures that when an agent acts lawfully and within the scope of their authority, the principal must compensate (indemnify) the agent for any loss, cost, or liability incurred during such actions.
✅ Key Conditions:
The agent must act lawfully.
The act must be within the authority granted by the principal.
If both conditions are met, the principal is obligated to indemnify.
🧑⚖️ Example:
A appoints B as his agent to purchase goods on his behalf. B lawfully enters into a contract and has to pay an advance. Later, A refuses to accept the goods.
➡️ A must indemnify B for the money spent in good faith and within authority.
📌 Related Sections:
Section 223: Indemnity for acts done in good faith.
Section 224: No indemnity for acts done criminally.
RELATED Blog
0 comments