Which of the following is a principal within the agency relationship?

A principal within the agency relationship is a fiduciary. A fiduciary is a person who has been entrusted with managing and directing another person’s assets or resources in order to achieve their best interests. In the context of an agency relationship, this means that the agent (the party who is hired to act on behalf of the principal) must act in good faith and loyalty towards the principal, using reasonable care and skill when executing their duties so as to protect their interests. This includes obligations such as adhering to instructions given by the principal; exercising discretion when making decisions; avoiding conflicts of interest between themselves and their client; maintaining confidentiality with regards to any information obtained while fulfilling their duties; reporting any risks or potential losses they identify which could affect the principal’s objectives; and notifying them immediately if they become aware of any changes in circumstances which may have an impact on the success of achieving these objectives.