Legally speaking, negligence is a failure to use reasonable care under the circumstances. In order to establish negligence, you must be able to prove four “elements”: a duty, a breach of that duty, causation and damages.
An agent is not generally liable for contracts made; the principal is liable. But the agent will be liable if he is undisclosed or partially disclosed, if the agent lacks authority or exceeds it, or, of course, if the agent entered into the contract in a personal capacity.
This is especially true if the third party is made aware of the agent's authority limitations. In this situation, the third party may still attempt to sue the principal for any damages caused. However, the principal can then turn around and sue the agent to recover any damages caused.
Additionally, principals can be held liable for the torts of their agents under the doctrine of vicarious liability. A principal is always liable for torts committed while the agent completes their official responsibilities.
A principal can be held directly liable for an agent's torts when: The principal gave faulty instructions to the agent. The principal negligently hired the agent. The principal failed to properly supervise the agent.
Principal's liability for acts of agent A principal is normally liable for all acts of an agent within the agent's authority, whether responsibility arises in contract or in tort. Authority means the agent's actual, apparent (ostensible) or usual (customary) authority.
However, the principal can then turn around and sue the agent to recover any damages caused. In such a scenario, the principal will only be able to recover for the damages caused outside the scope of authority. There are many benefits to hiring agents to carry out functions for your business.
If they hit someone and hurt them, they have committed a negligence tort and likely owe the victim for their losses. Another common example of negligence torts are cases of slip and fall, which occur when a property owner fails to act as a reasonable person would, thus resulting in harm to the visitor or customer.