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      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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