What is meant by "vicarious liability"?

"Vicarious liability" refers specifically to the legal principle where one party is held liable for the actions or omissions of another party. In the context of agency relationships, it means that a principal can be held responsible for the negligent or wrongful acts committed by their agent while performing tasks within the scope of their employment or duties.

This principle operates under the idea that the principal has a level of control over the agent’s actions, and, therefore, should bear some responsibility for those actions when they result in harm to third parties. For example, if an employee (agent) causes a car accident while delivering goods for their employer (principal), the employer could be held liable for damages because the employee was acting in the course of their employment.

Understanding vicarious liability is important as it emphasizes the responsibilities that principals have regarding their agents, particularly in maintaining safe practices and ensuring that agents act within the bounds of their authority and responsibilities. It is not an automatic liability in every situation nor is it limited solely to cases of negligence; it encompasses a broader range of actions that fall under the scope of the agency.