Business, Legal & Accounting Glossary
(rehs-pond-dee-at superior) n. Latin for “let the master answer,” a key doctrine in the law of agency, which provides that a principal (employer) is responsible for the actions of his/her/its agent (employee) in the “course of employment.”
Thus, an agent who signs an agreement to purchase goods for his employer in the name of the employer can create a binding contract between the seller and the employer. Another example: if a delivery truck driver negligently hits a child in the street, the company for which the driver works will be liable for the injuries.
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This glossary post was last updated: 30th April, 2020 | 0 Views.