BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Agency is defined as a relationship where one party, namely the principal, who delegates some authority to another party, namely agent to represent him or to act on his behalf, in dealing with a third person, as to create a binding legal relationship between the former and the third party.

Detailed explanation-2: -A disclosed or partially disclosed principal is liable to a third party for a contract made by an agent who is acting within the scope of his or her authority. Disclosed Principal: A principal whose identity is known to the third party at the time the agent makes a contract for the principal with the third party.

Detailed explanation-3: –As between the principal and third person any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principle according to the provisions in that behalf herein contained.

Detailed explanation-4: -An agency relationship involves one party (the agent) who has the authority to act or represent another party (the principal). Here, the agent acts as an intermediary between the principal and third parties when undertaking specific tasks. Agency relationships are common in many transactions.