Examples of Principals and Agents

Question 1

Basics about Power of Attorney

Answer 1

1) written authority to an agent
2) Formal writing
3) can be general or restricted authority
4) must be signed by person granting authority

Question 2

Death of a principal

Answer 2

terminates the agency relationship

Question 3

An Employee

Answer 3

1) is subject to control methods used to complete work

2) is controlled by a supervisor

Question 4

An Independent contractor

Answer 4

1) is paid for completion of the project
2) provides their own tools
3) not controlled

Question 5

Principals are liable for

Answer 5

unauthorized misrepresentations of employees (employees are under control)