New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    Which of the following is Principals duty towards an

    Agent?
    A Duty to indemnify against consequences of lawful acts Correct Answer Incorrect Answer
    B Duty to indemnify the agent against consequences of acts done in good faith Correct Answer Incorrect Answer
    C Duty to compensate the agent for injury caused by principal’s neglect Correct Answer Incorrect Answer
    D All of the Above Correct Answer Incorrect Answer

    Solution

    Section 222 - Agent to be indemnified against consequences of lawful acts: 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. Section 223- 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 may cause an injury to the rights of third persons. Section 225. 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.

    Practice Next