Ann is interested in purchasing Ted's factory. Since Ann is a poor negotiator, she hires Mary to negotiate the purchase price. Identify the parties to this transaction.
A) Mary is the principal and Ann is the agent.
B) Ted is the principal and Ann is the agent.
C) Mary is the agent while Ted and Ann together are principals.
D) Ann is the principal and Mary is the agent.
E) Ann is the principal and Ted is the agent.

Question

Quizplus · Accepted Answer

Ann is the principal because she is the one for whom the action (negotiation for the purchase of the factory) is being taken. Mary acts on behalf of Ann, making her the agent in this transaction.

Ann Is Interested in Purchasing Ted's Factory