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Donna and her friend Esther both receive D's on a Calculus midterm. Donna becomes depressed and seems to give up on her studies for some time thereafter. Esther, however, becomes driven to learn more about Calculus and earn a better grade on the next test. Which of the following statements best describes the mind-sets of Donna and Esther?
Principal
The party that an agent’s authority can bind or act on behalf of.
Agency
The fiduciary relationship that arises when one person consents to have another act on his behalf and subject to his control and the other consents to do so.
Power of Attorney
A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.
Legal Documents
Legal documents are formal written records that are drafted and executed in accordance with legal requirements, often used to establish rights, obligations, or agreements.
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