Question

In an agency relationship, a person (or entity) with whom the agent deals as a representative of the client. A ___ can be involved in the transaction but not as one of the principals.

Answer 1

An intermediary in an agency relationship acts as a facilitator between the agent and another party. This individual or entity connects parties like an agent connecting an actor with a casting director, or a bank connecting a saver with a borrower.

Step-by-step explanation:

In an agency relationship, the term used to describe a person or entity with whom the agent interacts on behalf of the client is intermediary. An intermediary is essentially a facilitator who acts as a bridge between two parties. This role is pivotal in various scenarios, such as in the entertainment industry where agents represent actors or in financial markets where banks may act as intermediaries between savers and borrowers.

An example of an intermediary in the entertainment business would be agents like Alaine Alldaffer, who represent actors and connect them with casting directors for opportunities.

In the context of financial markets, banks serve as intermediaries by pooling funds from several savers and then lending them out to borrowers. In both cases, the intermediaries play crucial roles in the functioning of the market or industry without being the principal parties involved in the final transaction or arrangement.