Restatement (Third) of Agency · Section § 6-01
This section discusses the liability of a principal for acts of an agent under the broader framework of agency law.
Source: Restatement Restatement (Third) of Agency § § 6-01
A principal is liable for a tortious act committed by an agent acting within the scope of their authority.
This section explains that if an agent commits a wrongful act while performing duties for their principal, the principal can be held responsible. It underscores the importance of understanding the agent's authority and the context in which the act occurred.
The principal's liability extends to acts occurring within the scope of the agent's duties.
An agent's authority is determined by the principal's consent, expressed or implied.
Illustration 1
If an employee delivers goods and causes an accident during delivery, the employer can be liable because the act was within the employee's job duties.
Illustration 2
A sales agent injuring a customer while demonstrating a product may result in the company being held liable as the act was part of the sales process.
This case illustrated that a restaurant owner was liable for injuries caused by a waiter acting within the scope of employment.
Understanding the liabilities under this section is crucial for businesses as it affects risk management and insurance coverage. This creates a duty for principals to train their agents properly to minimize exposure to tort claims.