If an agent for a disclosed principal commits the tort of deceit, who is liable for any financial loss?

In cases where an agent for a disclosed principal commits the tort of deceit, both the agent and the principal can be held liable for any financial loss that results. This liability stems from the principle of vicarious liability, where employers can be held responsible for the actions of their employees or agents if those actions fall within the scope of their duties.

The agent is directly liable for his or her own wrongful conduct, such as deceit. At the same time, the principal may also be held liable because the agent was acting on their behalf when the tortious act occurred. This dual liability exists because the principal benefits from the agent's acts, and allowing only one party to bear the financial burden would be inequitable in circumstances where both parties are involved in the business dealings.

It is important to recognize the nature of the principal-agent relationship, as the principal's liability is often contingent on the agent's actions being performed within the scope of the authority granted to them. If the agent was acting within this authority when they committed the tort, then not only is the agent liable for their deceit, but the principal can also bear some responsibility.

Considering the other options, the suggestion that only the agent or only the principal would be liable fails to acknowledge the complexities of