Greg, who wants to sell a car he owns, authorizes his concierge, Walter, to find a potential buyer and finalize a deal above a stipulated price. Walter contracts Jacob, an independent car sales broker, and instructs him to only find a potential buyer and send them over to Walter for the sale. Greg then contracts CarWreckers, an automobile modification company to renovate his car. CarWreckers completes its work and Greg pays them. Jacob then searches for a suitable buyer and finds one in Carl. Carl buys the car and Jacob is paid for his services. Who is the principal during the car sale transaction?

Question

Quizplus · Accepted Answer

Greg is the owner of the car and gave authorization to Walter to handle the sale above a certain price. Therefore, Greg is the principal in this transaction. The involvement of Jacob and CarWreckers are as agents or contractors working on behalf of Greg or Walter. Carl is the buyer and not the principal.

Greg, Who Wants to Sell a Car He Owns, Authorizes