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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 his (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.

Q.
Which of the following statements depicts correct legal position in this given 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 Princi...
A because it is not the job of Y to
take money from people and deposit it in the bank, and hence he was not in the course of employment.
Free Test
Community Answer
Principle:Vicarious liability is the liability of the Master or Princi...
Explanation:

Vicarious Liability:

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 his (Xs) neighbour and is also, cashier in a bank, to be deposited in As account in the bank. Instead of depositing the money, Y misappropriates it.

Legal position:

The correct legal position in this given situation is option 'A'.

Reasoning:

Y was not acting in the course of his employment with the bank when he misappropriated the money. He was acting as X's neighbour, not as the bank's employee. Therefore, the bank would not be vicariously liable for Y's actions. The bank can only be held liable for the actions of its employee if they are committed in the course of employment. Since Y's actions were not in the course of employment, the bank would not be liable.
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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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect answer is option 'A'. Can you explain this answer?
Question Description
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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect 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 his (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.Q.Which of the following statements depicts correct legal position in this given situation?a)The bank would not be liable because 'Y' did not do any wrong in the course of his employmentb)The bank would be vicariously liable because 'Y' was the employee of the bankc)The bank would not be liable because 'Y' did not do any wrongd)The bank would be liable because 'Y' acted as bank's agentCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.
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