Who can become a principal and who can become an agent? a. Any person can become a principal, but an agent has to have the capacity to contract. b. Any person can become a principal and any person can become an agent. c. A person must have contractual capacity to be a principal, but any person can become an agent.

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Business

Brennan Wall

7 August, 11:05

Who can become a principal and who can become an agent? a. Any person can become a principal, but an agent has to have the capacity to contract. b. Any person can become a principal and any person can become an agent. c. A person must have contractual capacity to be a principal, but any person can become an agent.

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Nathaniel Mcdonald · Answer 1

Answer: Option A

Explanation: Any person can become a principal having sufficient business but in order to become an agent of the principal one needs to have the capacity to contract on behalf of the principal.

In a principal agent relationship, the principal bounds the agent to act on his behalf. So, there is no legal contracts to become a principal but the acts of agent are legally bound to a certain extent.

Hence, option A is correct.