An agent highest duty is to his principal but his duty to the third party...

[Mittok]

Business English Lesson, Advanced Level

ESL/EFL Test #191 "The Law of Agency", question 2

Agency doctrine ......... the consequences, for the agent and principal, of the agent's interactions with third parties, as well as the consequences of the relationship as between the agent and principal.

(a) advocates
(b) dictates
(c) governs
(d) monitors

Business English Lesson, Advanced Level

ESL/EFL Test #191 "The Law of Agency", answer 2

Agency doctrine governs the consequences, for the agent and principal, of the agent's interactions with third parties, as well as the consequences of the relationship as between the agent and principal.

Correct answer: (c) governs
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An agent highest duty is to his principal but his duty to the third party depends on the agency involved. Discuss this.

Mittok

[Mister Micawber]

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Sometime over coffee, perhaps.
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Native English teacher at Mister Micawber's