Agent to the indemnified against consequences of lawful
acts
The employer of an agent is bound to indemnity him against
the consequences of all lawful acts done by such agent in exercise of the authority
conferred upon him. Section 222
Liability of principal to agent
An agent is entitled to reimbursement and indemnity by his
principal when he acts within the scope of his directions. The agent's right to
indemnity arises and becomes enforceable immediately on his incurring the
liability and it is in no manner dependent upon his discharging the same as
well.
Lawful act
To enable an agent to claim compensation under section 222,
it is an essential condition that the agent's act shall be lawful. It is not
sufficient that his acts are innocent and performed in good faith. If
unlawfulness or illegality is even indirectly connected with a perfectly
innocent and legal contract, the contract is rendered unlawful or illegal and
the Court would refuse to enforce such a contract.
Fraud on principal
Agents who engage to defraud their principal forfeit their
right to indemnity in respect of fraudulent transactions. Where securities
deposited by principal with agents are fraudulently disposed of by, agents, the
disposal amounts to conversion; and the principal on each occasion on which
securities were sold has a right to damages for conversion measured by their
value at the date of conversion.
Agent to be indemnified against consequences of acts done
in good faith
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 causes an injury to the right of third
persons. Section 223
Non-liability of employer of agent to do a criminal act
Where one person employs another to do an act which is
criminal, the employee is not liable to the agent, either upon an express or an
implied promise, to indemnify him against the consequences of that act. Section
224
Compensation to agent for injury caused by principal's
neglect
The principal must make compensation to his agent in respect
of injury caused to, such agent by the principal's, neglect or want of skill. Section
225
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