Jeff hires Frank to work for his company.As part of his job duties,Frank must negotiate a contract with another an outside company.In this business relationship,what are the respective roles of the parties?

Question

Quizplus · Accepted Answer

Jeff is the employer and therefore the principal in this situation, as he has hired Frank to undertake negotiations on his behalf. Frank is acting as the agent by negotiating the contract, and the outside company is a third-party as they are not directly employed by Jeff's company.

Jeff Hires Frank to Work for His Company