principal
The person or organization on whose behalf an agent acts and who is bound by the agent's authorized actions.
Definition
In agency law, the principal is the party that authorizes another, the agent, to act for it. The principal sets the scope of the task, is generally responsible for what the agent does within that scope, and may owe the agent payment. In a marketing relationship the client is the principal and the agency is the agent, although contracts often call them simply client and supplier. Principal also has other meanings, such as the head of a school or the original sum in a loan, so context matters. Understanding who is the principal helps clarify who approves decisions and who carries the risk.
In a sentence
The client, as principal, approved the media plan in writing.
An agent who exceeds instructions may leave the principal facing a dispute.
