In the case where landlords require tenants to pay security deposits:
A)the landlord is the agent and the tenant is the principal
B)the landlord is the principal and the tenant is the agent
C)both the landlord and the tenant are agents
D)both the landlord and the tenant are principals

Question

In the case where landlords require tenants to pay security deposits:
A)the landlord is the agent and the tenant is the principal 
B)the landlord is the principal and the tenant is the agent
C)both the landlord and the tenant are agents
D)both the landlord and the tenant are principals

Quizplus · Accepted Answer

The landlord is the principal because they own the property and are receiving the security deposit as a form of protection for their investment. The tenant is the agent because they are giving the security deposit as a guarantee of their responsibility for maintaining the property and paying rent on time.

In the Case Where Landlords Require Tenants to Pay Security