B, the proprietor of a newspaper, publishes at A's request, a libel upon C in the paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of any action in respect thereof. B is sued by C and has to pay damages, and also incurs expenses. Decide in the light of the Section 224 of the Indian Contract Act, 1872

All India Bar Examination (AIBE) 17-XVII Previous Year Question Papers with Answers

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32.

B, the proprietor of a newspaper, publishes at A's request, a libel upon C in the paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of any action in respect thereof. B is sued by C and has to pay damages, and also incurs expenses. Decide in the light of the Section 224 of the Indian Contract Act, 1872

A: A is not liable to B upon indemnity.

B: A is liable to B upon indemnity.

C: A is not liable to C upon indemnity.

D: None of these

The answer is: A

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Explanation

The correct answer is A: A is not liable to B upon indemnity.

This is because, according to Section 224 of the Indian Contract Act, 1872, where one person employs another to do an act which is criminal, the employer is not liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of that act. In this case, publishing a libel upon C is a criminal act, and A employed B to do it. Therefore, A is not liable to indemnify B against the damages and expenses that B had to pay to C.