Problem:
Discuss whether the principal is liable in each of the following situations. Explain your answer.
Andrew hires Patricia, an attorney, to negotiate a contract to purchase some property. He agrees to pay her $75 an hour for her services, and she agrees to use her own office and secretarial staff to negotiate and draft the agreement. One day, Patricia is driving her own automobile to a meeting with Edward to discuss the purchase of the land that he owns. Patricia drives too fast for conditions and has a minor traffic accident that results in $600 damage to the other vehicle.
Megaborne Corporation hires Ed as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products. One day Ed is driving the company car to call on a client. He accidentally drives the wrong way on a one-way street and has an accident with another vehicle that results in $6,000 in property damage and $30,000 in medical expenses.