Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.

LEGAL PRINCIPLE: A master will be liable for the wrongful acts of his servants in course of employment.

FACTUAL SITUATION: Mrs. Nitu, an old woman had an account in a bank. Mr. Robert, her tenant used to collect Rs. 100 from Mrs. Nitu and deposited it every week in the account of Mrs. Nitu. Mr. Robert got a commission from the bank for depositing that amount every week. After few months of transaction, it was found that Mr. Robert had not deposited the amount for five months in the account and that he had run away with that amount. Mrs. Nitu filed a suit against the bank.

Question-Is the bank liable?

The bank is not liable as Mr.Robert was not an employee of the bank.

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The bank is not liable for the failure on part of Mrs. Nitu to check the balance in her account in time.

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The bank is liable as the bank paid commission to Mr. Robert for the work he did.

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None of the above

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Solution

The correct option is D The bank is liable as the bank paid commission to Mr. Robert for the work he did.
Vicarious liability can be defined as a legal doctrine that assigns liability for an injury to a person who did not cause the injury who has a particular relationship to the person who did act negligently.
An act is deemed to be done in the course of employment if it is either
(a) wrongful act authorised by master.
(b) wrongful & unauthorised mode of doing some act authorised by master that is unauthorised in the way act is done by the servant.

In the above case, Bank will be liable as the wrongful act was committed by Mr. Robert in the course of employment.

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