PRINCIPLES i A master is liable for the wrongful acts of his servant ii A person can be called a ser...........

Logial Reasoning (CLAT) Statement - Assumptions

PRINCIPLES

(i) A master is liable for the wrongful acts of his servant.

(ii) A person can be called a servant only if there is a relation of employment and he acts under the order and on behalf of his master.

FACTS: X bank launched a saving scheme for poor sections of the society and the customer can deposit Rs. 10 per day. Y an unemployed youth collected money from several customers, and on behalf of them deposited the money at the Bank every day. The bank gave to Y a small commission. After sometime, Y disappeared without depositing the money given by the customers. The customers bring a suit alleging that the Bank is liable. Decide

The Bank is liable because it paid commission to Y

The Bank is liable because Y was their servant

The Bank is not liable because Y was not their servant

No one is liable

Explanation:

Here the payment of commission denoted a relationship between the bank and the agent.
However be as that may, option (2) is most close to the principle in wording