What is it called when liability for damage can be transferred from the negligent party to another person or organization?

The correct answer relates to the concept of vicarious liability, which occurs when one party is held liable for the negligence of another, typically in an employer-employee relationship. In such cases, the employer may be responsible for the actions of an employee if those actions were performed within the scope of employment. This doctrine allows for the liability for damage caused by negligent behavior to be transferred from the individual who actually caused the harm to the organization or individual that employs or supervises that person.

Understanding vicarious liability is essential as it underscores how businesses and organizations can be held accountable for the actions of their employees or agents, reinforcing the importance of training and supervision in reducing risks of liability.

In contrast, imputed negligence refers to when a person's negligence is attributed to another based solely on a legal connection, but it does not necessarily imply liability transfer in the same way as vicarious liability. The terms 'Transfer of Liability' and 'Shared Liability' do not correspond to widely recognized legal doctrines in this context, making them less relevant to the query regarding the transfer of liability due to another's negligence.