What is the Personal Liability of Principal and Agent – under the law of Torts.
The concept that is related to the liability between principal and agent is called vicarious liability. Vicarious liability is a concept where a person is liable for the actions of the others. This concept is quite controversial to the actual principle of the law of tort because it says that a person is liable only for the acts performed by him. Examples of various master-servant relationships can be partners of a partnership firm, company, and its directors, etc. In this case, the plaintiff can sue either the principal or the agent or both of them. So, the liability of the principal and agent is joint as well as individual. The principal becomes liable for the acts of the agent only if the act is performed under the scope of employment. For example, A works as a driver under QPR Travels. He was asked to drop ten passengers in a bus from Delhi to Ahmedabad but in the middle of the journey, the bus was looted by 3 robbers, and the passengers were ensured and guaranteed against the happening of such an event. In this case, the passengers can either sue the principal i.e., QPR travels, or the agent who is A or both of them. The other example can be, B is a partner in ABC Ltd. And he has the duty of updating the accounts from time to time about the petty expenses of the firm. In this, B added the amount he spent on buying a hand blender on credit for his own purposes, and upon the due of credit period, he refused to pay the amount saying everybody in the firm was entitled to pay the amount in their respective shares. But, since this is an act out of the scope of employment or the work allotted, the claim of B is wrong, and hence nobody but only he is liable to pay the full amount to the creditor.