Multiple choice

M is a partner in a firm whose business was to collect legitimately information about the business contracts of competitors. He bribed the clerk of a rival firm to give secret information about his master's customers and business contracts and prices. As a result the rival firm lost business worth Rs. 1, 00,000. Sufficient evidence is available with the rival form about such a bribe. In such a case, the rival firm can sue and the firm is liable to the rival firm.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The firm is vicariously liable for a partner's wrongful act committed in the course of business, even if the method used (bribery) was illegal. Since the firm's business was collecting competitor information, the act fell within business scope.

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