What is the legal concept called when one person is held liable for the actions of another?

Vicarious liability is the legal principle that holds one party responsible for the actions of another, typically occurring in employer-employee relationships. Under this doctrine, an employer may be held liable for the wrongful acts of an employee performed within the scope of their employment. This means that if the employee's actions lead to harm or damage while they are working for the employer, the employer can be held accountable as well, even if they did not directly commit any wrongdoing.

This concept is crucial in fields such as real estate, where brokers and agents must understand their potential liabilities regarding their employees or affiliates. Vicarious liability ensures that victims have the ability to seek compensation from deeper pockets, as often an employer has more resources than an individual employee.