Book Title: Research Handbook on Corporate Liability

Publisher: Edward Elgar Publishing

Abstract: The law of agency plays a very important role in matters of corporate liability. Corporations can only act through others, whether these are individuals or legal entities that act through individuals. In many instances the individuals will be employees but they could also be agents (whether employees or not) or simply independent contractors. Corporations are liable for acts of their agents that fall within what the agents were authorised to do or appeared to have authority to perform, or where authority was conferred retrospectively. A special rule in corporate law known as the indoor management rule that can affect corporate liability is also closely related to agency doctrine. The doctrine of vicarious liability for employee wrongs also has some equivalence in agency law though the scope of the latter is uncertain.