Question

When a person delegates his authority to another person and appoints him/her to do some specific job or a number of them in specified areas of work, it establishes a relationship of

• A. Master-servant
• B. Principal-agent
• C. Parent-child
• D. Husband-wife

Answer 1

The Correct Option is B

In legal studies, when a person delegates authority to another to perform specific tasks within certain areas of work, this establishes a Principal-agent relationship. 

This relationship involves one party, the principal, granting authority to another, the agent, who then acts on behalf of the principal in dealing with third parties. The agent's actions within the scope of given authority legally bind the principal.

Relationship Type	Description
Principal-agent	The agent acts on behalf of the principal, who has delegated authority to the agent.