Question

Which of the following is an example of an agency relationship?

- A friendly competition between rival businesses

- Partners who start a business together

- Someone who negotiates on another’s behalf

- A client that ends a transaction with one business to start another

Answer 1

Answer:

- Someone who negotiates on another’s behalf.

Explanation:

An agency relationship is when a person authorizes another one to act on his/her behalf when handling matters with another party. For example, a buyer's agent takes care of finding a property that adjusts to the buyer's requirements and then, negotiates the best terms on behalf of the person. According to this, the example of an agency reationship is someone who negotiates on another’s behalf.