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Chapter 8 (1) - PRINCIPAL AGENT RELATIONSHIP Principal...

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PRINCIPAL – AGENT RELATIONSHIP
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Principal hires another to act as an agent. Agent performs acts on behalf of the principal.
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Independent contractor is distinct from an employee. Independent contractor is usually paid by the job. Often has his own business and uses his/her own equipment.
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Employer can be liable for the torts committed by employees “while acting within the scope of employment.” The employer can be liable under the legal theory “respondeat superior.” Let the master respond. The employer is normally not liable for the acts of an independent contractor.
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