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Principal and Agent of Vicarious Liability for CLAT - Practice Questions & MCQ

Edited By admin | Updated on Sep 25, 2023 25:26 PM | #CLAT

Quick Facts

  • 11 Questions around this concept.

Solve by difficulty

Read the following passage and answer the question. 

This legal principle denotes that an individual or entity can be held accountable for the actions of another person, typically within the scope of a relationship where one party has the right, ability or duty to control the activities of the other.A common instance of vicarious liability is in an employer-employee relationship. If an employee causes harm to another while carrying out their duties, the employer could potentially be held liable. This is because the employer has control over the employee's activities during work and thus, indirectly, the consequences of those activities. For example, if a delivery driver negligently crashes into another car while on a delivery, the company could be held vicariously liable for the damage.The rationale behind vicarious liability lies in balancing the scales of justice and promoting safety. By holding employers accountable for their employees' actions, vicarious liability encourages them to enforce stricter safety measures and supervise their employees' conduct more effectively.However, it's worth noting that not all actions of an employee give rise to vicarious liability. 
The misconduct must occur within the 'course and scope' of employment. If the employee's actions were personal or outside the range of their duties, the employer may not be held responsible. Vicarious liability is not limited to employer-employee relationships; it can also arise in other contexts where one party has the right to control the conduct of another. These can include relationships between principals and agents, partners in a partnership, and even parents and their minor children in some jurisdictions. Vicarious liability, therefore, serves as a reminder that the ability to control another's conduct comes with a potential legal responsibility for their actions, encouraging all to exercise this power with care and diligence.

Question : At a school picnic, a teacher negligently leaves a gate open, and a child wanders off and gets injured. In this case

Read the given passage and answer the following question.

This legal principle denotes that an individual or entity can be held accountable for the actions of another person, typically within the scope of a relationship where one party has the right, ability and duty to control the activities of other.
A common instance of vicarious liability is in an employer-employee relationship. If an employee causes harm to another while carrying out their duties, the employer could potentially be held liable. This is because the employer has control over the employee's activities during work and thus, indirectly, the consequences of those activities. For example, if a delivery driver negligently crashes into another car while on a delivery, the company could be held by vicarious to liable for the damage.
The rationale behind vicarious liability lies in balancing the scales of justice and promoting safety. By holding employers accountable for their employees' actions, vicarious liability encourages them to enforce stricter safety measures and supervise Their employee's conduct more effectively.
However, it's worth noting that not all actions of an employee give rise to vicarious liability. The misconduct must occur within the 'course and scope' of employment. If the employee's actions were personal or outside the range of their duties, the employer may not be held responsible.
Vicarious liability is not limited to employer-employee relationships; it can also arise in other contexts where one party has the right to control the conduct of another. These can include relationships between principals and agents, partners in a partnership, and even parents and their minor children in some jurisdictions.
Vicarious liability, therefore, serves as a reminder that the ability to control another's conduct comes with a potential legal responsibility for their actions, encouraging all to exercise this power with care and diligence.

Question : During working hours, Mr. Smith, a pizza delivery driver for Pizzalicious, accidentally hits a pedestrian while he is resting to deliver a pizza. In this case

 

 

 

Read the following passage and answer the questions. 

This legal principle denotes that an individual or entity can be held accountable for the actions of another person, typically within the scope of a relationship where one party has the right, ability or duty to control the activities of the other. A common instance of vicarious liability is in an employer-employee relationship. If an employee causes harm to another while carrying out their duties, the employer could potentially be held liable. This is because the employer has control over the employee's activities during work and thus, indirectly, the consequences of those activities. For example, if a delivery driver negligently crashes into another car while on a delivery, the company could be held vicariously liable for the damage.The rationale behind vicarious liability lies in balancing the scales of justice and promoting safety. By holding employers accountable for their employees' actions, vicarious liability encourages them to enforce stricter safety measures and supervise their employees' conduct more effectively.However, it's worth noting that not all actions of an employee give rise to vicarious liability. 

The misconduct must occur within the 'course and scope' of employment. If the employee's actions were personal or outside the range of their duties, the employer may not be held responsible. Vicarious liability is not limited to employer-employee relationships; it can also arise in other contexts where one party has the right to control the conduct of another. These can include relationships between principals and agents, partners in a partnership, and even parents and their minor children in some jurisdictions. Vicarious liability, therefore, serves as a reminder that the ability to control another's conduct comes with a potential legal responsibility for their actions, encouraging all to exercise this power with care and diligence.

Question: During working hours, Mr. Smith, a pizza delivery driver for Pizzalicious, accidentally hits a pedestrian while he is rushing to deliver a pizza. In this case:

 

Which of the following case is related to Vicarious liablity of Principle & Agent ?

Concepts Covered - 1

Principal and Agent

Overview 

  • Vicarious liability is a legal principle that holds one party (the principal) responsible for the wrongful acts or negligence of another party (the agent) when the agent is acting on behalf of the principal.

Principal and Agent:

  • In the context of vicarious liability, a principal is an individual or entity that grants authority to another person or entity (the agent) to act on their behalf.
  • The relationship between the principal and agent is referred to as an agency, where the agent represents the interests of the principal.

Key Elements of Principal-Agent Relationship:

  • Consent and Authority: The agency relationship begins with the principal granting the agent consent and authority to act on their behalf. This can be established through a formal agreement or implied by the circumstances.
  • Fiduciary Duty: Agents owe a fiduciary duty to their principal, which means they must act in the best interests of the principal and avoid conflicts of interest. They are expected to act with loyalty and diligence.
  • Scope of Agency: The agent's actions must fall within the scope of their authority and be related to the tasks or duties assigned by the principal. Actions beyond the scope of agency may not lead to vicarious liability.

Examples:

  • Example 1 - Corporate Context: A multinational corporation (the principal) appoints a regional manager (the agent) to oversee its operations in a specific region. If the regional manager engages in corrupt practices to secure contracts for the company, the corporation may be held vicariously liable for the manager's actions because they were acting on behalf of the corporation.
  • Example 2 - Legal Context: A client (the principal) hires a lawyer (the agent) to represent them in a court case. If the lawyer fails to file important documents on time due to negligence, leading to the client's loss in court, the lawyer's negligence could lead to vicarious liability for the law firm or agency that employs them.

Indian Case Law:

  • Indian courts have consistently applied the principle of vicarious liability concerning the principal-agent relationship. In "State of Rajasthan v. Vidhyawati" (1962), the Supreme Court of India held the government (the principal) vicariously liable for a government servant's wrongful act while driving a government vehicle during official duty.

Indian Constitution:

  • While the Indian Constitution doesn't explicitly mention vicarious liability, it provides citizens with legal avenues to seek compensation for wrongful acts committed by agents of the government. Articles 32 and 226, for instance, allow individuals to approach the Supreme Court and High Courts for remedies against the state or its agents.

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