Asked by Rachel Zingerman on May 20, 2024
Verified
What should an agent do when a principal's instructions are unclear?
A) Interpret the instructions to the best of his ability.
B) It depends upon the authority granted to the agent.
C) Act in accordance with what he believes is best for the principal.
D) Communicate with the principal to clarify the instructions.
Principal's Instructions
Guidelines or orders given by a principal to an agent detailing how to perform specific tasks or duties.
Agent's Authority
The scope of power given to an agent to act on behalf of a principal in legal or business matters.
Best for Principal
A standard or principle requiring actions or decisions to be made in the best interest of the principal or the party represented.
- Comprehend the consequences of an agent's power in sales and transactions.
Verified Answer
Learning Objectives
- Comprehend the consequences of an agent's power in sales and transactions.
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