What does the principle of "respondeat superior" entail?

The principle of "respondeat superior" is a fundamental concept in agency law that establishes an employer's liability for the actions of their employees performed within the course of their employment. This doctrine holds that an employer is responsible for the negligent acts of employees as long as those acts occur during the scope of their employment. It emphasizes the idea that employers have a duty to supervise and control their agents or employees and should bear the consequences of their actions when they are acting on behalf of the employer.

This principle encourages responsible management and oversight within organizations since it makes employers accountable for the conduct of their employees. In practical terms, if an employee commits a tort or causes harm to a third party while performing work-related duties, the employer can be held liable for those actions.

The other options do not accurately reflect the scope of "respondeat superior." While principals indeed have a duty to ensure their agents act in their best interests, that does not capture the essence of employer liability under this doctrine. Hence, the correct understanding lies in recognizing that under "respondeat superior," employers are liable for acts performed by their employees in the context of their employment.