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Chief Minister and Council of Ministers

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Question

________is the relationship between two persons where one person is employed by another to act on behalf of that another with the third person.

A

Agency

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B

Bailment

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C

Indemnity

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D

Guarantee

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Solution

The correct option is D Agency
Section 182 states "An ‘agent’ is a person employed to do any act for another, or to represent another in dealings with third person. The person for whom such act is done, or who is so represented, is called the ‘principal’." Hence, Agency is the relationship between two persons where one is employed by another to act on his behalf to a third party.

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