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

• A. No, as bribing is not in course of 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 authorized by the others.

Answer 1

The correct option is A No, as bribing is not in course of employment of the partners.

Partnership firm is vicarious liable for act of B under implied authority. But bribing cannot be considered as course of his employment.