#commercial law


Any relationship of trust wherein one party (the agent) acts for or represents another (the principal) under the authority of the latter, in dealing with third parties.


In commercial law, the principal is the person or group of people who authorize an agent to act on their behalf.


The agent is a person or group of people who act on behalf of other people (a principal).

In business, this is typically the chief executive officer or another person who is put in charge of a company owned by others.