PRINCIPLE Vicarious liability is the liability of the Master or Principal for the tort committed by ...........

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 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 depict correct legal position in this given legal 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:

Y was handed over the cash in his capacity as X’s neighbour. So, it’s in the nature of a personal arrangement between the two, and the Bank will not be liable for wrongs arising out of that.