The Purpose of an Agency Relationship Is To

question 12

Multiple Choice

The purpose of an agency relationship is to:

• A) allow the principal to extend his business activities by authorizing agents to enter into contracts with third persons on the principal's behalf.
• B) encourage business growth by protecting employers from liability for torts or criminal activity.
• C) allow a principal to contract through agents in ways he would not be able to contract on his own,such as creating valid contracts in situations where the principal could only create voidable contracts on his own.
• D) eliminate the distinction between employees and independent contractors.

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