Section 224 of ICA : Section 224: Non-Liability Of Employer Of Agent To Do A Criminal Act

Explanation using Example

Imagine a scenario where a business owner, Mr. X, hires Mr. Y to sabotage a competitor's shop to gain market advantage. Mr. X promises to cover any legal costs or fines that Mr. Y might face as a result of this illegal act. However, after carrying out the act, Mr. Y is caught and fined by the authorities. According to Section 224 of The Indian Contract Act, 1872, Mr. X is not obligated to cover Mr. Y's fines or legal expenses because the act they agreed upon was criminal in nature.