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

Someone who negotiates on another's behalf

Explanation

Agency relationship prevails in a situation whereby there is a representation involved and hence there is a risk of any bias or fraud. The selected answer includes a form of representation which therefore sheds light on the prevalence of an agency relationship prevailing. A chance of bias is always included because while bargaining the former may keep some benefit margin for him or herself.