Question

Principle: Master is liable for the acts of his servant done in the course of his duties.

Facts: X hired an employee Y in his construction business. Y was the property in-charge who received construction material and gave receipts for the material received by him. Z claimed payment for cement supplied to X which was duly received by Y. X denied the payment on the ground that he has only received half of the material and the balance was is utilized by the employee Y.

Options

• X is liable for the entire amount 

• X is liable for the part amount only i.e. for payment of the cost of half of the material 

• X is not liable for the misconduct/embezzlement of his employee 

• Z can claim the balance payment only from Y 

Answer 1

X is liable for the entire amount 

Explanation:

X is liable for the entire amount because the principle  clearly states “Master is liable for the acts of his servant done in the course of his duties.” Therefore, it is clear that X will have to bear the consequences of Y’s misdeed done while in the employment of X.