Principal
/ˈprɪnsəpəl/
Definitions
- (n.) A person who authorizes an agent to act on their behalf in legal or business matters.
The principal signed the contract, authorizing the agent to negotiate.
- (n.) The main party liable in a financial obligation, such as a borrower in a loan agreement.
The principal must repay the loan amount by the due date.
- (adj.) Of highest importance or rank; primary.
The principal reason for the contract termination was breach of terms.
Forms
- principals
Related terms
See also
Commentary
In drafting, clearly distinguish the principal from agents to avoid ambiguity in authority and liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.