Tuesday, July 22, 2008

The Principal Agent Relationship

5. The Principal Agent Relationship Requires assent, benefit, and control.

Assent is an informal agreement between a principal who has capacity and an agent.

Benefit refers to the requirement that the agent's conduct must be for the principal's benefit.

Control means that the principal must have the right to control the agent by having the power to supervise the manner of the agent's performance.

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