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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?
  • a)
    The bank would not be liable because Y did not do any wrong in the course of his employment.
  • b)
    The bank would be vicariously liable because Y was the employee of the bank.
  • c)
    The bank would not be liable because Y did not do any wrong.
  • d)
    The bank would be liable because Y acted as bank’s agent.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
PRINCIPLE: Vicarious liability is the liability of the Master or Princ...
Because the act was done by x was out usual course of employment. But if x had given him money on the bank as a employee and y missappropriates it then the bank would be held liable but in this case bank wouldn't be held liable
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PRINCIPLE: Vicarious liability is the liability of the Master or Princ...
Understanding Vicarious Liability
Vicarious liability holds an employer (Master or Principal) responsible for the torts committed by an employee (servant or agent) during the course of their employment. However, this liability does not extend to acts outside of employment, particularly when the acts are personal or unauthorized.
Facts of the Case
In this scenario:
- X, a homeowner, entrusts cash to Y, his neighbor who is a bank cashier, to deposit in A's bank account.
- Instead of depositing the cash, Y misappropriates the money for personal use.
Analysis of the Given Options
- Option A: The bank would not be liable because Y did not do any wrong in the course of his employment.
- Explanation: Y’s act of misappropriation was a personal wrongdoing, not one executed within the scope of his employment at the bank. Although Y is employed by the bank, his actions concerning X's money were unauthorized and outside his duties as a cashier.
- Option B: The bank would be vicariously liable because Y was the employee of the bank.
- Explanation: This is incorrect as Y's act was not performed in the course of his employment but rather as a personal act of theft.
- Option C: The bank would not be liable because Y did not do any wrong.
- Explanation: This option is misleading. Y did commit a wrong by misappropriating the funds.
- Option D: The bank would be liable because Y acted as the bank's agent.
- Explanation: This is incorrect as Y was not acting in his capacity as a bank employee when he misappropriated X's money.
Conclusion
The correct legal position is reflected in Option A: The bank is not liable because Y's wrongful act was outside the scope of his employment and was a private wrongdoing.
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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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer?
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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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer?.
Solutions for 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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?a)The bank would not be liable because Y did not do any wrong in the course of his employment.b)The bank would be vicariously liable because Y was the employee of the bank.c)The bank would not be liable because Y did not do any wrong.d)The bank would be liable because Y acted as bank’s agent.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.
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