BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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alter legal relations
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control and supervise
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both a and b
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none of these
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Detailed explanation-1: -An agency relationship consists of the principal and the agent where the principal gives the agent legal permissions to act on the principal’s behalf. In this type of relationship, agents should not have any conflicts of interest in executing any act the principals appoint them to do.
Detailed explanation-2: -An agency relationship is created when one person (the principal) consents to another person (the agent) acting on his behalf, subject to the P’s control, and the A agrees to do so. Agency most often comes up in relationship to business matters of some sort. At common law this relationship was called “master-servant.”
Detailed explanation-3: - Principal: The person or entity on whose behalf and subject to whose control an agent acts.
Detailed explanation-4: -An agency relationship is one in which a party acts on behalf of and with the authority of another party. The principal appoints or authorizes the agent to act on her behalf.