An agency contract must involve?
-
A.
a principal and a consumer -
B.
a principal and a producer -
C.
a principal and a third party -
D.
a principal and an agent
Correct Answer: Option D
Explanation
An agency contract involves the principal and the agent.
The principal-agent relationship is an arrangement in which one entity legally appoints another to act on its behalf. In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act.