Question

The Principal must give compensation to his agent in respect of injury caused to an agent by the ___________.

• A. principal's neglect
• B. principal's want to skill
• C. principal's want to knowledge
• D. all of the above

Answer 1

The correct option is D all of the above

An 'agent' is a person employed to do an act for another or represent another in dealings with another person. The person for whom such act is done or who is represented by the agent is called 'principal.' The agent act as a connecting link between the principal and the third party and makes contract on behalf of the principal which further binds the principal as if the principal has done it himself. This is known as creation of contract of agency.

The relationship between the principal and his agent engenders certain rights and duties for both towards each other. One of such duties of principal towards his agent has been provided under section $225$ of Indian Contract Act, $1872$ which says that the principal must compensate his agent for the injury caused by principal due to his neglect and want of skill. This means that if any injury is caused by principal to his agent due to principal's negligence, ignorance, lack of skill or knowledge, then it is his duty to compensate the agent.