Is Agent to be indemnified against consequences of lawful acts? Is Agent to be indemnified against consequences of acts done in good faith? Section 222 and 223 of Indian Contract Act 1872
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.
(a) B, at Singapore, under instructions from A of Calcutta, contracts with C to deliver certain goods to him. A does not send the goods to B, and C sues B for breach of contract. B informs A of the suit, and A authorizes him to defend the suit. B defends the suit, and is compelled to pay damages and costs, and incurs expenses. A is liable to B for such damages, costs and expenses.
(b) B, a broker at Calcutta, by the orders of A, a merchant there, contracts with C for the purchase of 10 casks of oil for A. Afterwards A refuses to receive the oil, and C sues B. B informs A, who repudiates the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses. A is liable to B for such damages, costs and expenses.
223. 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.
(a) A, a decree-holder and entitled to execution of B's goods, requires the officer of the Court to seize certain goods, representing them to be the goods of B. The officer seizes the goods, and is sued by C, the true owner of the goods. A is liable to indemnify the officer for the sum which he is compelled to pay to C, in consequence of obeying A's directions.
(b) B, at the request of A, sells goods in the possession of A, but which A had no right to dispose of. B does not know this, and hands over the proceeds of the sale to A. Afterwards C, the true owner of the goods, sues B and recovers the value of the goods and costs. A is liable to indemnify B for what he has been compelled to pay to C and for B's own expenses.
Section 206 - Notice of revocation or renunciation
Section 207 - Revocation and renunciation may be expressed or implied
Section 208 - When termination of agent's authority takes effect as to agent, and as to third persons
Section 209 - Agent's duty on termination of agency by principal's death or insanity
Section 210 - Termination of sub-agent's authority
Agent's duty to Principal
Section 211 - Agent's duty in conducting principal's business
Section 212 - Skill and diligence required from agent
Section 213 - Agent's accounts
Section 214 - Agent's duty to communicate with principal
Section 215 - Right of principal when agent deals, on his own account, in business of agency without principal's consent
Section 216 - Principal's right to benefit gained by agent dealing on his own account in business of agency
Section 217 - Agent's right of retainer out of sums received on principal's account
Section 218 - Agent's duty to pay sums received for principal
Section 219 - When agent's remuneration becomes due
Section 220 - Agent not entitled to remuneration for business misconducted
Section 221 - Agent's lien on principal's property
Principal's duty to agent
Section 222 - Agent to be indemnified against consequences of lawful acts
Section 223 - Agent to be indemnified against consequences of acts done in good faith
Section 224 - Non-liability of employer of agent to do a criminal act
Section 225 - Compensation to agent for injury caused by principal's neglect