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21 May, 09:45

When two individuals trust each other because of the trust that exists between the individuals and a separate entity, what type of trust has been established?

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  1. 21 May, 11:41
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    The trust that has been established between two individuals because of the trust that exists between the individuals and a separate entity is called as third-party trust.

    Explanation:

    Often when two individuals who do not know each other in person choose to participate in an activity that has money or other benefits involved, they choose to involve a third person in the operation who is known to both. This step is taken mainly to establish trust for the sake of the fulfillment of the operation without any kind of cheating.
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