Respondeat superior is the rule of agency law holding that the principal is liable to third parties for all wrongful acts of the agent committed while transacting the principal’s affairs. For instance, if a listing agent misrepresents a certain aspect of the property, and the buyer relies on this misrepresentation, the seller is liable to the buyer, because the listing agent committed a wrongful act while transacting the seller’s affairs. Likewise if a buyer’s agent misrepresents the buyer’s ability to perform on a contract, and the seller relies on that misrepresentation, the buyer is liable to the seller for the buyer’s agent’s wrongful conduct. In other words, the agent’s words and action
