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of <h1>Principals Must Indemnify Agents for Lawful Acts Under Section 222 of the Indian Contract Act, 1872</h1> Under Section 222 of the Indian Contract Act, 1872, a principal is obligated to indemnify an agent for consequences arising from lawful acts performed within the authority granted by the principal. This indemnification covers damages, costs, and expenses incurred by the agent. For instance, if an agent contracts on behalf of the principal and the principal fails to fulfill the contract, resulting in a lawsuit against the agent, the principal must cover the agent's legal expenses and any damages awarded. This duty ensures agents are protected when acting lawfully under the principal's instructions.
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