Question

LEGAL PRINCIPLE: The master/principal is liable for all acts done by his duly appointed servant/agent for all acts done by him lawfully in the course of his employment.

FACTUAL SITUATION: A, B and C carried on a business in partnership. While making a deal with another company, B bribed the clerk there. Is the partnership firm vicariously liable?

DECIDE.

• A. No, as bribing is not a course or employment of the partners.
• B. Yes, as partners are agent of the firm.
• C. Yes, as B can be said to have implied authority for the same.
• D. No, as this act was not authorised by the others.

Answer 1

Answer: (B)

Yes, as partners are agent of the firm.

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. 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. Therefore, in the above case, firm being the principal and the partners being its agents, the firm will be held vicariously liable.