John hired Tim to sell his house.Which statement is correct?

Question

Quizplus · Accepted Answer

In an agency relationship, the principal is the person who hires the agent to act on their behalf. In this scenario, John is hiring Tim to sell his house, making John the principal and Tim the agent. Therefore, option A is the correct statement. Option B is incorrect as only the principal has the power to terminate the agency relationship. Option D is also incorrect as Tim cannot be John's principal as John is the one who hired Tim to act on his behalf.

John Hired Tim to Sell His House