Which of the Following Constitutes an Agency

question 56

Multiple Choice

Which of the following constitutes an agency?

• A) principal-agent relationship
• B) agent-agent relationship
• C) principal-principal relationship
• D) agent-independent contractor relationship

---

Definitions:

Undisclosed Financial Interest

A situation where an individual has a financial stake in an undertaking that they have not made known, potentially leading to a conflict of interest.

Doctrine of Constructive Notice

A principle in law whereby individuals are assumed to be aware of their legal rights and obligations, even if they do not possess actual knowledge of them.

Indoor Management Rule

A party dealing with a corporation may assume that the officers have the valid and express authority to bind the corporation.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.