Vicarious Liability Doctrine

What You Need to Know about Vicarious Liability Doctrine

(Last Updated On: June 17, 2022)

Vicarious Liability Doctrine is a popular terminology that is used to describe a situation. It states that one party is responsible for the other party. The third party is declared responsible for the doings or actions were taken by the first party.

Logically this is not understood how can a third party can be responsible for the good or wrongdoing of another party. This is defined by the Vicarious Liability Doctrine. We will try to understand the phenomenon with a few examples of the Vicarious Liability Doctrine.

Vicarious Liability Doctrine

Example:

One company hires one salesperson. The salesperson or the employee is responsible for the sales operations on behalf of the company. The salesperson used the name of the company and took the loan from the market and vanished.

The company that hired him will be considered responsible on his behalf. Because he was hired by the company and he was also representing the company therefore the company will be considered responsible for the act of salesperson.

Example:

There are three partners of a Company XYZ. They all deal in exports. One of the partners represents the company in the export office. He makes a fraud while making deals with the exporters.

A case is filed against the company in an overseas office and the country office through an international court. (Judgements can also be endorsed between countries if there is a contract between them). Therefore, the company will be liable for the fraud made by one of the parties.

Example of Vicarious Liability Doctrine:

One of the partners in a firm took a loan from Bank which is a liability to a business. This is the liability upon company means both partners. When the loan was taken then the name of both partners was in the trade license. If that partner leaves the company, then still loan will be a liability to the company.

If the leaving partner makes some special arrangements with the current active partner then that is something else, but if the partner leaves the company with the consent of the active/existing partner then, that partner and the company will be responsible for the debt, taken from Bank.  

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Business is a Business: Safety Measures

Business is a Business. Safety measures must be taken. When a business has to face risky situations because of the format of the business then there must be made special internal agreements with the employees or partners as per the Vicarious Liability Doctrine.

These agreements must be made as per the Law. For example, if the implemented and ruling law in the United Arab Emirates is UAE Law or Sharia Law, then agreements must be made with checking the legitimacy of UAE Law and Sharia Law.

Agreements are drafted by lawyers. These Lawyers are the law professionals who are capable of drafting the agreements. For example, if a business agreement has to be drafted then, it means, it should be drafted by Civil or Commercial Litigation Lawyers.

If a Family agreement has to be drafted then it should be by the Family Law Lawyers. Similarly, if it is an Employment matter then it should be by the top Labour and Employment Lawyers.

If a Law Firm is joined then the client gets a large number of options for his work. A large number of options means a large number of professionals available under one roof. Therefore, all it takes you to the right expert or the professional if a Law Firm is hired rather than freelancers. The Law Firm is certainly a little expensive business but it takes you to the right place where:

  • Time is saved.
  • Results are taken.
  • New things are also learned.

UAE Advocates

UAE Advocates for example Dubai Lawyers or Abu Dhabi Lawyers, are made to help UAE businesses and UAE people. They are made to help not to loot. Therefore, the government makes strict laws to control the legal services and lawyers.

Therefore, the Advocates in UAE, can’t loot the clients or exploit the clients. If anything goes wrong then a complaint against the lawyers or any law office can also be registered in the DIWAN office. DIWAN office will call the accused law firm or the lawyer and will really, punish them.

The best way to get benefitted from the lawyers and legal consultants is to contact Law Firms. Law Firms with a solid reputation. It is only earned when a Law Firm has spent a large number of times in practice.

For example, Ask The Law – Al Shaiba Advocates and Legal Consultants, the most professional Law Firms in the United Arab Emirates. Such Law Firms are reputed because of in-to business for several years on the basis of the Vicarious Liability Doctrine.   

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