Which of the following constitutes an agency?

Question

Quizplus · Accepted Answer

An agency relationship exists when one party, the principal, hires another party, the agent, to act on its behalf, creating a principal-agent relationship. Option B, agent-agent relationship, is not an agency relationship, as there is no principal involved. Option C, principal-principal relationship, also does not constitute an agency relationship, as there are two equal principals involved, rather than one principal and one agent. Option D, agent-independent contractor relationship, may involve some elements of agency, but it is not a clear-cut example of an agency relationship.

Which of the Following Constitutes an Agency