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Generally,if an Agent Negligently Injures a Third Party Within the Scope

question 14

Essay

Generally,if an agent negligently injures a third party within the scope of the agency,the principal can be held liable even if the agent was violating the instructions of the principal.Is this fair to the principal? What is the justification for this rule?


Definitions:

Net Income

The company’s earnings remaining after total revenue has been adjusted for expenses, taxes, and other charges.

Liabilities

The financial obligations or debts a company owes to others.

Owner's Equity

The residual interest in the assets of a entity after deducting liabilities, representing what the owners own outright.

Creditors' Risk

The risk faced by lenders that borrowers may default on their debt obligations, potentially leading to financial losses.

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