Under what circumstance can a principal be held liable for the actions of an independent contractor?

A principal can be held liable for the actions of an independent contractor, particularly when the contractor is engaged in inherently dangerous activities. This principle arises from the notion that certain activities carry a higher risk of harm to others, and when a principal hires an independent contractor to perform such activities, the principal may still retain a level of responsibility for the resulting consequences.

Inherently dangerous activities are those that are likely to cause harm regardless of the care taken. Examples include blasting, using chemicals, or operating heavy machinery. Courts recognize that since these activities are fraught with potential risk, a principal should ensure that the independent contractor takes sufficient precautions to mitigate those risks. Therefore, liability may be imposed on the principal to protect third parties from foreseeable harms that arise from those dangerous activities.

In contrast, engaging an independent contractor does not in itself create a basis for liability unless these inherently dangerous conditions are present, making this answer the correct choice.