LAW 561-002 – Business Associations

Vicarious Liability


A principal is vicariously liable when its agent commits a tort while in the scope of his employment. R3A § 7.07.

Principals are vicariously liable for torts committed by their agents in communicating with third parties on or purportedly on behalf of the principal when actions taken by the agent with apparent authority constitute the tort or enable the agent to conceal its commission. R3A § 7.08.

  • This is basically only ever relevant in fraud cases.