What is a principal in law?

Another area where the term "principal" is used is in agency law. Here, the principal is the person who authorizes another individual, known as the agent, to act on their behalf. The principal gives the agent the power to make decisions and take actions that will legally bind the principal.

Who is a principal in commercial law?

In commercial law, a principal is a person, legal or natural, who authorizes an agent to act to create one or more legal relationships with a third party. This branch of law is called agency and relies on the common law proposition qui facit per alium, facit per se (from Latin: "he who acts through another, acts personally").

What does principal mean in English?

Principal is used also to denote the more important; as, the principal person. In the English law, the chief person in some inns of chancery is called principal of the house. Principal is also used to designate the best of many things as, the best bed, the best table, and the like.