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Read the following passage and answer the question.

Since ancient times, it is the rule that a person should be held liable for his own mistake. In the words of Plato: "a person should be held for his own sins". But, in the thirteenth century, in England, it was for the first time, established that the master would be liable for his servant's or slave's torts only when there is an express command of the master to the servant's wrong.

By the end of the 17th century, this concept of liability was found inadequate due to the rise in commercial transactions. A new development took place when Sir John Holt, in the case of Tubewille v Stamp (1697), held that "the master would be liable for his servant's tort if he had given his implied command". There is a maxim 'qui facit per alium facit per se' which means 'he who does an act though another is deemed in law to do it himself, on which the vicarious liability of principal for the tort of his agent is based. Usually, a person is liable for his tortious acts. But if he shares certain types of relationships with another person, that person might be liable for the wrongful act.

A principal is vicariously liable for the tort of his agent committed within the course of his authority. An agent is a person who, otherwise than as a servant and otherwise than as an independent contractor, whether by way of contract or only by way of request, conducts some business or performs some act or series of acts on behalf of another, i.e. principal. The liability of the master for the tort which has been committed by his servant is based on the maxim 'respondent superior' i.e. superior is responsible. In law, it is established that he who employs another to do something does it himself, or he who does an act through another is deemed in law to do it himself.

Question :

How can it be determined, whether the relationship is of the principal agent or not?

Option: 1

The hire and Fire test is applied to determine the vicarious liability


Option: 2

An employer can control how the agent will act


Option: 3

Employer pay remuneration to the agent


Option: 4

All of the above


Answers (1)

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There are two tests in distinguishing between a servant and an independent contractor:

Hire and Fire Test: To apply this test, it is seen whether the person employed can be fired from his job or not. He receives a salary as his remuneration for the job. If yes, then this test is fulfilled.

However, this test alone does not make a person a servant.

Direction and Control test: Test whether the person who has to do a job receives directions from the principal as to how to do the job. If the answer is in the affirmative then he is a servant. If the answer is negative then he is an independent person.

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Pankaj

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