The relationship of an independent contractor who is an agent of a principal and the principal is best described by which of the following statements?

Question

Quizplus · Accepted Answer

The relationship between an independent contractor and a principal may or may not involve agency, depending on whether the contractor has the authority to act on behalf of the principal. In some cases, the independent contractor may be acting purely as a service provider, without any decision-making authority on behalf of the principal. In other cases, the contractor may be authorized to act on behalf of the principal and make binding decisions on their behalf, in which case they would be considered an agent. Therefore, the correct answer is that an independent contractor may or may not be an agent, depending on the specific circumstances of their relationship with the principal.

The Relationship of an Independent Contractor Who Is an Agent