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Law of Torts.doc
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2) Principal and Agent

The relationship of principal and agent is one where the principal empowers the agent to act on her behalf in such a way as to affect her legal relationship with others. The agent is most commonly authorized to make contracts and transfer property on behalf of the principal. The general rule is that the principal is vicariously liable for the torts of her agent committed within the scope of her actual or apparent authority. Most of the cases involve fraudulent misrepresentations in respect of contracts entered into by agents but there are numerous cases dealing with a wide range of torts for which the principal has been held liable. It should be pointed out that many agents are also employees. In those circumstances, plaintiffs often rely on the vicarious liability of the employer since the phrase "course of employment" is normally broader than "scope of authority." When an agent is an independent contractor, reliance must be placed on the agency rules of vicarious liability.

Agency also forms the basis of liability in partnership law. The partnership firm and all other partners are liable for the tortious acts of partners acting in the ordinary course of the firm's business or within the scope of their authority.

3) Statutory Vicarious Liability

The rules of vicarious liability have been modified legislatively in respect of the owners of motor vehicles. The purpose is to extend the common law vicarious liability of the owner of the motor vehicle to cover the torts of employees who are driving the vehicle in the course of employment to members of the owner's family, and in some provinces the rules have been extended to any persons who are driving the motor vehicle with the owner's consent. The Ontario legislation, [Note 49: Highway Traffic Act, R.S.O. 1990, c. H.8, s. 192(1). ] for example, makes the owner liable for all damage caused by the negligent operation of his motor vehicle on a highway unless the motor vehicle was in the possession of some person without the owner's consent. Although the wording of the provincial legislation is not uniform, the general policy is clear. It is to allocate accident losses caused by authorized drivers to the owner of the motor vehicle who has ultimate control over the use of the vehicle and liability insurance.

4) Independent Contractors

An independent contractor is normally a discrete business entity that is independent from the employer who hires it. It is able to take its own risk management and accident prevention measures and arrange for appropriate liability insurance. A person who employs an independent contractor to perform services or undertake tasks on his behalf is not, therefore, ordinarily liable for the torts committed by the contractor carrying out the work.

The employer does, however, have some personal duties in respect of independent contractors, including a duty of care in selecting and hiring the independent contractor and a duty of care to supervise the contractor to the extent that is reasonable, having regard to the technicality of the work. There may also be liability where the contractor is directed by the employer to carry out an illegal task.

a) Non-delegable Duties

There are some truly exceptional circumstances where the employer is subject to statutory and common law duties that are non-delegable. In those circumstances, the work may be delegated to an independent contractor but the employer remains fully responsible for the failure of the contractor to take care in its performance. A non-delegable duty resting on the employer is not merely a duty to take care. It is a duty to ensure that care is taken. The concept of a non-delegable duty is a useful device that allows a court to advance the policies supporting vicarious liability to independent contractors when the circumstances suggest that it is appropriate to do so.

The categories of non-delegable duties are diverse and include duties of care in respect of hazardous activities including fire, strict statutory duties to perform a positive act, the duty of a landowner to provide lateral support, the duty not to create a nuisance, the custodial duty of care of a bailee for reward, and duties of care arising from the exercise of some statutory powers. In the past, courts have been content to list these duties without attempting to clarify an underlying principle that justifies the imposition of a greater responsibility for independent contractors in these situations.

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