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.
Explanation & Strategy
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This question is based on the law of indemnity and defamation. When B publishes a libel at A's request, B acts as A's agent for this purpose. A is liable to indemnify B for any liability arising from the publication, as B acted under A's instructions. This illustrates the principal-agent indemnity obligation.
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