Question

Driver is in the employ of Owner, as a taxi driver, transporting passengers from Hatfield to Pretoria. Whilst on duty, Driver is involved in an accident, solely caused by the negligence of Driver. The owner of the other vehicle, A, involved in the accident, is of the opinion that Owner can be held liable for his damages, suffered due to Drivers negligence. Discuss this statement

Answer 1

In this case taxi driver is employed by owner and working in the name of the company hence owner will be liable for the loss caused due to accident as for this case there is a contract of agency between owner and the driver .

As an agent is a person employed to do act for another or represent another in dealing with third person .

When a person has the capacity to create contractual relationship between the principal and the third party ,bind the principal by his own acts, there exists a relationship of agency hence owner will be liable .