Section 225 The Indian Contract Act, 1872
Section 225 of the Indian Contract Act, 1872 deals with the right of an agent to be indemnified for acts done in good faith.
📜 Section 225 – Compensation to Agent for Injury Caused by Principal’s Neglect
"The principal must compensate his agent for injury caused to such agent by the principal’s neglect or want of skill."
🔍 Explanation:
If an agent suffers loss or injury because the principal was negligent or lacked proper skill, then the principal is legally bound to compensate the agent.
✅ Key Points:
The agent must be performing his duties under the contract.
If harm is caused due to the principal’s carelessness or incompetence, compensation is mandatory.
This protects the agent from unfair damage or loss caused by the principal's conduct.
💡 Example:
A is B’s agent and is asked to transport goods. B gives faulty instructions or poor-quality packing, causing A to be fined or injured in the process. B must compensate A under Section 225 because the injury was caused due to B’s lack of care or skill.
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