When Is a Principal Vicariously Liable?

Vicarious liability is a form of secondary or indirect liability that is imposed when parties have a particular relationship, usually an agency relationship. When it is applicable to a particular situation, a principal is required to answer for an agent's negligent or otherwise wrongful actions.

Under which one of the following situation does a principal becomes vicariously liable for the agent's acts?

Issues in the Case

When a person engages another to act on his behalf it creates a relationship between the principal and the agent. Since the principal put the agent in a situation where a tort is committed, the principal is vicariously liable for the acts of the agent.

What is vicarious liability principle?

Principle of Vicarious liability

Generally, a person is liable for his own wrongdoing and one does not bear any obligation for the work done by others. The general rule of vicarious liability is that liability of one person for the act done by another person, may arise. The law refers to this as vicarious liability.