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30-11-2022
Business

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In a situation where a car salesman is selling cars on behalf of the dealer, the salesman is the a. Principal b. Agent c. Both of the above c. None of the above

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sapanpandit sapanpandit

03-12-2022

In a situation where a car salesman is selling cars on behalf of the dealer, the salesman is the Principal

In a principal-agent relationship, one entity formally designates another to act on its behalf. When there is a principle-agent connection, the agent represents the principal and shouldn't have any competing interests when performing the act. The law of agency defines rules for a connection known as "agency," which is the relationship between the principle and the agent.

To the extent that the principal gives reasonable instructions, the agent is accountable for carrying out the responsibilities assigned by the principal. The agent also has a duty to avoid doing anything to purposefully hurt the principal.

To learn more about principal agent refer here:

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