The principal refers to the original sum of money invested or loaned, on which interest is calculated. It can also refer to the head of a school or organisation.
A principal refers to a person who authorizes another individual, known as an agent, to act on their behalf in legal matters.
The responsibilities of a principal include providing clear instructions to the agent, acting in good faith, and ensuring that the agent’s actions are within the scope of their authority.
Yes, a principal can be held liable for the actions of their agent if the agent was acting within the scope of their authority and in furtherance of the principal’s interests.
Yes, a principal generally has the right to revoke the authority of their agent at any time, as long as it does not violate any contractual obligations or legal requirements.
Yes, a principal can be bound by the actions of their agent even if they were not aware of those actions, as long as the agent was acting within the scope of their authority.
In certain circumstances, a principal may be held responsible for the debts incurred by their agent if the agent was acting within the scope of their authority and the debts were incurred in furtherance of the principal’s interests.
Yes, a principal can be held liable for the negligence of their agent if the agent was acting within the scope of their authority and the negligence resulted in harm or damages to another party.
In some cases, a principal may be held responsible for the criminal actions of their agent if they authorized or participated in the criminal activity, or if they failed to exercise reasonable supervision or control over the agent’s actions.
Generally, a principal is not held responsible for the actions of an independent contractor, as they have less control over their actions compared to an agent. However, there may be exceptions depending on the specific circumstances and the nature of the relationship between the principal and the independent contractor.
Yes, a principal can be held liable for the actions of a sub-agent if they authorized the agent to delegate their authority to a sub-agent and the sub-agent’s actions were within the scope of that delegated authority.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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- American Psychological Association (APA):Principal. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/principal/
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