In an agency, the principle creates an agency relationship with a second party by authorizing him or her to make contracts with third parties on the principal's behalf.The second party to this relationship is authorized to make contracts with a third party and is known as the:

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The second party in an agency relationship, authorized to make contracts with third parties on behalf of the principal, is known as the agent. This is a fundamental concept in agency law, where the agent acts on behalf of the principal in dealings with third parties.

In an Agency, the Principle Creates an Agency Relationship with a Second