Kit hires Lane to obtain insurance for Kit's business. Lane agrees to act on Kit's behalf in the effort, and Kit trusts Lane to so act. Their relationship is

Question

Quizplus · Accepted Answer

Lane, acting on Kit's behalf to obtain insurance, is an agent of Kit. Kit, who has entrusted Lane with this task, is the principal in this relationship. This is a classic principal-agent relationship, where the agent is authorized to act on behalf of the principal.

Kit Hires Lane to Obtain Insurance for Kit's Business