Asked by
Aishath Ilma Adnan
on Nov 21, 2024
Verified
In an agency relationship, both parties must agree to their roles as principal and agent.
Agency Relationship
A legal bond in which one person, the agent, acts on behalf of another, the principal, in transactions with third parties.
Principal
In finance, the original amount of money invested or loaned, before interest.
Agent
An individual or entity authorized to act on behalf of another person or entity, known as the principal, in various transactions or negotiations.
- Gain an understanding of the definitions and distinctions among types of agency relationships.
Verified Answer
AL
Learning Objectives
- Gain an understanding of the definitions and distinctions among types of agency relationships.
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