Question

Principle: Vicarious liability is the liability of the Master or Principal for the tort committee by his servant or agent, provided the tort is committed in the course of employment. The Master or Principal is not liable for private wrongs of the servant/agent.
Facts 'X' hands over some cash money at his house to 'Y' who is his (X's) neighbor and is also cashier in a bank, to be deposited in A's account in the bank. Instead of depositing the money, 'Y' misappropriates it.

• A. The bank would not be liable because 'Y' die not do any wrong in the course of his employment
• B. The bank would be vicariously liable because 'Y' was the employee of the bank
• C. The bank would not be liable because 'Y' did not do any wrong
• D. The bank would be liable because 'Y' acted as bank's agent

Answer 1

Answer: (A)

The bank would not be liable because 'Y' die not do any wrong in the course of his employment

According to the provision of law of torts on vicarious liability, a master or principal is liable for the torts committed by his servant or agent, provided the tort is committed in the course of employment.