In the context of agency, who is the "principal"?

Prepare for the Torts Restatement Test with comprehensive flashcards and insightful multiple-choice questions. Each query is equipped with hints and detailed explanations to aid your understanding. Gear up for your assessment!

In the context of agency, the "principal" refers to the individual who authorizes another person (the agent) to act on their behalf. This relationship is foundational to agency law, as the principal grants the agent the authority to perform certain actions or make decisions as if they were the principal themselves. This might include entering into contracts or managing tasks relevant to the principal’s interests.

The other options do not accurately define a principal in this context. The party bringing a lawsuit is typically known as the plaintiff, while the party providing legal representation is often called the attorney or lawyer. The party being sued is referred to as the defendant. These roles are distinct from that of a principal in an agency relationship, which emphasizes the authorization aspect where one party acts on behalf of another.

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