Vicarious Liability

Contingent Liability (Vicarious Liability)
A contingent liability refers to potential financial obligations that a business may incur due to actions of parties other than its own employees, notably when independent contractors are involved.
Master-Servant Rule
The master-servant rule is a legal doctrine whereby an employer can be held liable for the negligent acts or omissions of an employee if those acts occur within the scope of employment and result in bodily injury and/or property damage to third parties.
Scope of Employment
The term 'scope of employment' refers to acts done while performing one's job duties. It is used to determine an employer's liability for the acts of its employees.
Vicarious Liability
Vicarious liability is a legal concept where one party is held liable for the actions or omissions of another person, even if the liable party did not personally commit the act. This is often seen in employer-employee relationships, where employers can be held accountable for the actions of their employees performed within the scope of their employment.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.