Question

Who can become a principal and who can become an agent?a. Any person can become a principal, but an agent has to have the capacity to contract. b. Any person can become a principal and any person can become an agent. c. A person must have contractual capacity to be a principal, but any person can become an agent.

Answer 1

Answer: Option A

Explanation: Any person can become a principal having sufficient business but in order to become an agent of the principal one needs to have the capacity to contract on behalf of the principal.

In a principal agent relationship, the principal bounds the agent to act on his behalf. So, there is no legal contracts to become a principal but the acts of agent are legally bound to a certain extent.

Hence, option A is correct.