What is rule of principals?

Rule of Principles: This rule states that a principal is liable for the acts of his/her agent that are done within the scope of agent's employment. In other words, if an agent commits a wrong while performing his/her duties on behalf of the principal, then the principal will be held responsible for those actions. This rule applies even if the principal did not specifically authorize the agent to commit those acts. For example, if a sales agent employed by a company makes false statements to a customer about a product to make a sale, even if the company did not explicitly tell the agent to do so, the company might still be held liable as it falls within the course of agent's duty to promote sales.