Who is the principal, and who is the agent in this scenario? By which method was an agency relationship formed between Scott and Blatt?

The answer to the question is given in two parts, with sub heading to differentiate the same.

Explanation:

The Principal and The Agent

The Principal is the person who has hired an another individual to do some work on their behalf (in which case the agent is an independent contractor) or to perform some task assigned by the principal (in which case the agent is an employee). This is best understood by the degree of control the principal has over the agent's work. High degree of control indicates the agent is an employee and Less degree indicates the agent is an independent contractor.

In the given scenario, Blatt hired Scott for assisting him in selling insurance for his company. Therefore, Blatt is the principal while Scott is the agent.

Method of Agency Relationship formed

There are two ways by which an agency can be formed. One ways is by mutual consent (this can be verbally or any other means) or by signing of an agreement.

In this scenario, the relationship was formed by signing of an agreement between Blatt and Scott.

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