Question:
Principle: Vicarious liability is the liability of the master or principal for the tort committed by his servant or agent in the course of employment. The master or principal is not liable for private wrongs of the servant/agent.
Facts: 'X' hands over cash to his neighbour 'Y', who is also a cashier in a bank, to deposit in 'A's bank account. Instead of depositing the money, 'Y' misappropriates it.
Principle: Vicarious liability is the liability of the master or principal for the tort committed by his servant or agent in the course of employment. The master or principal is not liable for private wrongs of the servant/agent.
Facts: 'X' hands over cash to his neighbour 'Y', who is also a cashier in a bank, to deposit in 'A's bank account. Instead of depositing the money, 'Y' misappropriates it.
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Employers are not liable for acts of employees done outside the scope of employment.
Updated On: Aug 11, 2025
- The bank would not be liable because 'Y' did not do any wrong in the course of his employment
- The bank would be vicariously liable because 'Y' was the employee of the bank
- The bank would not be liable because 'Y' did not do any wrong
- The bank would be liable because 'Y' acted as bank's agent
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The Correct Option is A
Solution and Explanation
'Y' was acting in a personal capacity, not in the course of his employment as a cashier. Vicarious liability applies only when the wrongful act is committed in the scope of employment.
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