Principle Vicarious liability is the liability of the Master or Principal for the tort committed nbs...........

Legal Concepts Law of Torts

Principle: Vicarious liability is the liability of the Master or Principal for the tort committed by his servant or agent, provided the tort is committed in the course of employment. The Master or Principal is not liable for private wrongs of the servant/ agent.

Facts: ‘X’ hands over some cash money at his house to ‘Y’, who is his (X’s) neighbour and is also cashier in a bank, to be deposited in A’s account in the bank. Instead of depositing the money, ‘Y’ misappropriates it.

Which of the following statements depicts correct legal position in this given situation?

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

Explanation:

X gave money to Y in his house not only because he was a cashier, but because he was his neighbor and X trusted him.
Y as an employee was not told by the bank to collect money from X at his house.
Therefore the Bank is not vicariously liable for the act of Y as it was committed outside the course of employment.