The term "name of agent," in brackets, is intended in the general sense, to denote. Watch Expert CA Bar Exam Instructor and Tutor Shana Karpeles, Esq.In certain circumstances, a principal will be held liable for his or her agent's torts. The principal can be held directly liable or indirectly liable. A principal is not liable for the intentional torts of agents and employees that are committed outside the principal's scope of business. In California, if a court finds vicariously liable, you may be ordered to pay for the victim's medical bills, lost wages, pain and suffering, and other losses. This article defines and explains the legal concept of Principal and Agent Liability in California. Direct liability for negligence, not vicarious liability. Vicarious liability is not limited to harm caused in the course of an agency relationship. An example is when a broker or salesperson is acting as a principal in a transaction who is an arranger of credit pursuant to Civil Code §§ 2956-2957.