Which term refers to the body of rules governing the relationship between principals and agents?

Which term refers to the body of rules governing the relationship between principals and agents?

• A. Common Law
• B. Law of Agency
• C. Express Authority
• D. Apparent Authority

Answer: (B)

The main idea here is the set of rules that defines how principals and agents interact and the authority they can exercise. The best term is the Law of Agency. It covers how authority is created, what an agent can do on behalf of a principal, and the duties and liabilities of both parties. Express Authority and Apparent Authority are specific types of authority within that body of law, not the whole framework themselves. Common Law is the broader legal system, of which agency law is a part, but the question seeks the specific name for the relationship rules, which is the Law of Agency.

The main idea here is the set of rules that defines how principals and agents interact and the authority they can exercise. The best term is the Law of Agency. It covers how authority is created, what an agent can do on behalf of a principal, and the duties and liabilities of both parties. Express Authority and Apparent Authority are specific types of authority within that body of law, not the whole framework themselves. Common Law is the broader legal system, of which agency law is a part, but the question seeks the specific name for the relationship rules, which is the Law of Agency.