BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -According to Section 182, of the Indian Contract Act, 1872, a principal is a person who delegates authority to another person namely, the agent.

Detailed explanation-2: - Principal: The person or entity on whose behalf and subject to whose control an agent acts. For example, your boss at work. Agent: A person who agrees to act on behalf of and instead of his or her principal, subject to the principal’s control. A good example would be an insurance agent.

Detailed explanation-3: -An agency relationship consists of the principal and the agent where the principal gives the agent legal permissions to act on the principal’s behalf. In this type of relationship, agents should not have any conflicts of interest in executing any act the principals appoint them to do.

Detailed explanation-4: -The person for whom such act is done, or who is so represented, is called the ‘principal’.-An ‘agent’ is a person employed to do any act for another, or to represent another in dealings with third person. The person for whom such act is done, or who is so represented, is called the ‘principal’."

Detailed explanation-5: -Agency relationships An agent in commercial law (also referred to as a manager) is a person who is authorized to act on behalf of another (called the principal or client) to create a legal relationship with a third party.