Vicarious liability is a theme of “Law of Torts” before proceeding to this topic it’s equally salient to know about the law of torts. Imitative from the Latin term “tortum”, meaning twisted that was used to denote ‘twisted, incorrect conduct’. Described as a class of actions that was distinct from breach of contract, hence a separate category of civil action. Legally introduced in England after the Norman invasion through the courts of Normandy and Angevin Kings of England.

Relationship Governed by Vicarious Liability

1- Master-Servant Relationship

2- Principal-Agent Relationship

1. Partners Relationship     

Master and servant are terms used to explain a legal relationship among an organization (the master) and employee (the servant). In most instances, a master-servant agreement is a settlement for a service wherein the employer has direct manages the actions of the servant.

In this case, the general rule is that the master is liable for all sorts of acts that are authorized by him. Also, it is included that the acts are done by the servant at the time of his/her employment.

Thus, for the liability to arise, the following conditions should be satisfied. One is that the tort is committed by the servant. And other is that the tort committed by the servant should be at the time of employment.

Although there is a difference between an independent contractor and a servant. An independent contractor is someone who is employed to perform a certain task. Thus, in this, the master cannot determine the way in which the job is to be done.

While a servant is someone who is employed to do the work under the controls of the master and his direction. So, the important thing here to note is that the master is also not liable for the acts that are done by the independent contractor.

For example, the driver you hire is your servant. You can give me advice as to how to drive the car and give him directions. While the taxi driver in this scenario will be the independent contractor. Thus, you can only tell the direction to the taxi driver but you cannot order him.

Furthermore, to test the difference between an independent contractor and a servant there are two tests. These tests are hired and fire test and direction and control test. In the hire and fire test, you can whether someone is your employee or not by knowing whether that person can be fired or not.

Also, ask whether that person receive the salary in the form of remuneration? If the answer to both the questions is yes then that person is your employee. Although this tests alone cannot be a detrimental factor to decide anything. The other test that you have to do is direction and control test.

In this test, check whether the person that needs to do the job receives the direction regarding the direction from his master? If the answer is yes then that person is a servant. So, you can see that both the test needs to satisfy to find out whether the person is an independent contractor or a servant.

Principal, in this case, is a person who authorizes someone to act on his/her behalf. While the other who is advised to act accordingly is called as the agent. It is always stated that the principal is stated liable for any act by his agent. It is important that the act is authorized by the principal for him to be held liable. The authority that principal acts can be in the form of implication or expressed.