Section 93 The Indian Contract Act, 1872
Section 93 of the Indian Contract Act, 1872 deals with “Agent to be indemnified against consequences of acts done in good faith.”
🔹 Bare Act Language:
Section 93 – "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 rights of third persons."
🔹 Explanation:
If a principal directs an agent to do something, and the agent performs that act honestly and in good faith, then:
The principal must compensate (indemnify) the agent if any loss or legal consequences arise, even if a third party is harmed.
The key condition is that the agent acted in good faith and followed the instructions.
🔹 Illustration:
A, a principal, directs B, his agent, to sell certain goods belonging to C, believing them to be A's own property.
B, acting in good faith and without knowledge of C’s ownership, sells them.
C sues B for damages.
Since B acted in good faith under A’s instructions, A is bound to indemnify B for the damages paid to C.
🔹 Important Points:
The section protects agents who act sincerely under instructions.
It imposes responsibility on principals for the consequences of their directions.
It does not apply if the agent acts dishonestly, negligently, or against instructions.
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