When a principal places an agent in a position to defraud a third party,the principal is liable for the agent's fraudulent acts.

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Quizplus · Accepted Answer

This is the legal principle of vicarious liability, also known as respondeat superior, which holds that employers are responsible for the actions of their employees when those actions occur within the course of their employment. If an agent is acting within the scope of their employment when they commit fraud against a third party, the principal could be held liable for any resulting harm or damages.

When a Principal Places an Agent in a Position to Defraud