Question

Principle: Master is liable for the acts of his servant done in the course of his duties.
Facts: X hired an employee Y in his construction business. Y was the property in-charge who received construction material and gave receipts for the material received by him. Z claimed payment for cement supplied to X which was duly received by Y. X denied the payment on the ground that he has only received half of the material and the balance was misutilized by the employee Y.

• A. X is liable for the entire amount
• B. X is liable for the part amount only i.e. for payment of the cost of half of the material
• C. X is not liable for the misconduct/embezzlement of his employee
• D. Z can claim the balance payment only from Y

Hint:

Employers are liable for the actions of their employees performed during the course of employment, including cases of misconduct or embezzlement.

Answer 1

The Correct Option is A

As per the principle, the master (employer) is responsible for the acts of his servant (employee) that are performed in the course of employment. In this case, Y, who was employed by X, received the materials on behalf of X and gave receipts for the same. Even though Y misused the materials, the responsibility still lies with X as the employer since Y was acting under the scope of his employment. X is therefore liable for the entire payment, as he authorized Y to receive the materials.
Thus, the correct answer is (A).
Option (B) is incorrect because even if Y misappropriated the materials, X is still responsible for the entire payment. Option (C) is incorrect because the employer is liable for the acts of the employee, including misconduct during the course of employment. Option (D) is incorrect because Z can claim the entire payment from X, as X is the employer and is responsible for his employee's actions.