Question

    When is a principal required to compensate their agent

    under the Special Contract Act?
    A When the agent fails to perform their duties Correct Answer Incorrect Answer
    B When the principal's neglect or lack of skill causes injury to the agent Correct Answer Incorrect Answer
    C Only when the agent is injured by a third party Correct Answer Incorrect Answer
    D When the agent demands compensation regardless of circumstances Correct Answer Incorrect Answer
    E When the agent voluntarily leaves the job. Correct Answer Incorrect Answer

    Solution

    Section 225 Compensation to agent for injury caused by principal's neglect: The principal must make compensation to his agent in respect of injury1 caused to such agent by the principal's neglect or want of skill.

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