Question

LEGAL PRINCIPLE: Master/Principal is vicariously liable for the tort committed by a servant/agent, in the performance of his duties as a servant/agent.

FACTS: A gave some cash and cheques to his friend B, who was an employee of the State Bank of India, to deposit the same in that Bank in the account of A. B misappropriated the amount.

If A sues the Bank, for damages, then the Bank is _______.

• A. Liable to pay because it was the employer of B
• B. Liable to pay because the employee did it during business hours and while working as an employee
• C. Not liable because he turned out to be the friend of the plantiff's husband
• D. Not liable because while committing the fraud, he was not acting as the agent or employee of the Bank

Answer 1

Answer: (D)

Not liable because while committing the fraud, he was not acting as the agent or employee of the Bank

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. It can also be called as imputed negligence. This doctrine arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. Hence, Bank will not be liable as B was not acting as the agent/employee of the bank while committing fraud.