Principal definition: Copy, customize, and use instantly
Introduction
The term "Principal" typically refers to the primary party in a contractual relationship who has the authority to make decisions, enforce terms, or represent another party. It can be used to describe the primary person or entity responsible for a contract or transaction. Understanding the definition of "Principal" is crucial for determining responsibility, authority, and obligations within a legal agreement.
Below are various examples of how "Principal" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Principal" as the primary party in a contract
This definition ties "Principal" to its role as the primary entity or individual in a contract.
"Principal" means the primary party who holds the main obligation or authority in the contract, responsible for fulfilling the terms and conditions stipulated.
Definition of "Principal" as an employer or client
This definition connects "Principal" to its role as an employer or client.
"Principal" refers to the party who engages another party, such as a contractor or agent, to perform specific duties or services on their behalf.
Definition of "Principal" as an agent’s employer
This definition links "Principal" to its relationship with an agent.
"Principal" means the party who authorizes an agent to act on their behalf, often with the authority to make binding decisions within the scope of the agent's duties.
Definition of "Principal" as a financial entity
This definition ties "Principal" to its role in finance.
"Principal" refers to the amount of money that is originally invested or loaned, on which interest and returns are calculated, separate from any earnings or interest.
Definition of "Principal" as a head of an organization
This definition connects "Principal" to its role in organizational leadership.
"Principal" means the head of an educational institution, organization, or business entity, responsible for overseeing the operations and policies of the institution.
Definition of "Principal" as a primary beneficiary
This definition applies "Principal" to its role in benefits or interests.
"Principal" refers to the primary beneficiary or party entitled to receive benefits, proceeds, or payments from an agreement, such as a trust or insurance policy.
Definition of "Principal" as the main party responsible for a debt
This definition links "Principal" to its role in debt obligations.
"Principal" means the primary debtor who is responsible for repaying the original sum of a debt, excluding any interest or additional charges.
Definition of "Principal" as an officer in a corporation
This definition ties "Principal" to a corporate officer role.
"Principal" refers to an officer, director, or key executive within a corporation, having significant decision-making power or responsibility within the organization.
Definition of "Principal" as the primary owner in a business
This definition connects "Principal" to ownership.
"Principal" means the primary owner of a business, holding the most significant equity interest or control over the operations of the company.
Definition of "Principal" as an authorized decision-maker
This definition links "Principal" to its role in decision-making.
"Principal" refers to the person or entity with the ultimate authority to make binding decisions and commitments on behalf of another party or organization.
Definition of "Principal" as a party in an agency relationship
This definition ties "Principal" to its role in an agency relationship.
"Principal" means the individual or entity who appoints an agent to act on their behalf, with authority to bind them legally within the scope of the agency.
Definition of "Principal" as a contractual obligation holder
This definition applies "Principal" to obligations in contracts.
"Principal" refers to the party that holds the primary obligations under a contract, responsible for performing the agreed-upon duties or actions.
Definition of "Principal" as the original sum in a loan agreement
This definition links "Principal" to loan agreements.
"Principal" refers to the original amount of money borrowed in a loan agreement, excluding any interest or fees associated with the loan.
Definition of "Principal" as a governing authority
This definition connects "Principal" to governance.
"Principal" means the governing authority of a corporation or organization, typically holding the power to set policies and direct major actions within the entity.
Definition of "Principal" as the primary contractor
This definition ties "Principal" to contracting roles.
"Principal" refers to the main contractor who is ultimately responsible for the completion of a project, and who may subcontract work to other parties.
Definition of "Principal" as a supervisory party
This definition applies "Principal" to supervisory roles.
"Principal" means the individual or entity with supervisory authority, overseeing the actions or performance of others in a professional or organizational setting.
Definition of "Principal" as the leading figure in a transaction
This definition links "Principal" to its role in transactions.
"Principal" refers to the leading party in a transaction, often holding the primary responsibility for managing the deal or agreement.
Definition of "Principal" as a trust beneficiary
This definition connects "Principal" to trusts.
"Principal" means the party for whom a trust is created, benefiting from the assets held by the trust.
Definition of "Principal" as the primary party in a contract
This definition ties "Principal" to its role as the main entity in a contract.
"Principal" means the main party responsible for fulfilling the terms of the contract and bearing the primary obligations.
Definition of "Principal" as an employer or client
This definition connects "Principal" to its role as an employer or client.
"Principal" refers to the party who hires or contracts another party, such as a contractor or agent, to perform specific duties or services.
Definition of "Principal" as the primary debtor
This definition links "Principal" to its role in debt obligations.
"Principal" means the party responsible for repaying the original amount of a loan, excluding interest or other financial charges.
Definition of "Principal" as a financial term
This definition applies "Principal" to a financial context.
"Principal" refers to the original sum of money invested, borrowed, or loaned, on which interest is calculated and returns are based.
Definition of "Principal" as an agent’s employer
This definition ties "Principal" to its relationship with agents.
"Principal" means the person or entity that authorizes an agent to act on their behalf, with the authority to bind them legally within the scope of the agency.
Definition of "Principal" as the head of an organization
This definition connects "Principal" to leadership.
"Principal" refers to the head of a school, organization, or business entity, responsible for managing its operations and overseeing policies.
Definition of "Principal" as a party in a partnership
This definition links "Principal" to partnerships.
"Principal" refers to a partner in a business or partnership who holds the main responsibility for decision-making and operations.
Definition of "Principal" as the primary owner in a business
This definition ties "Principal" to ownership.
"Principal" means the main owner of a business, holding the largest equity interest and control over its operations.
Definition of "Principal" as a party in an agency agreement
This definition connects "Principal" to agency agreements.
"Principal" refers to the person or entity who delegates authority to an agent to act on their behalf and is bound by the agent's actions within the scope of the agency.
Definition of "Principal" as the primary contractor
This definition applies "Principal" to contracting roles.
"Principal" refers to the main contractor in a construction project or service contract, responsible for overall performance and completion.
Definition of "Principal" as a supervisory figure
This definition links "Principal" to supervisory roles.
"Principal" means the individual or entity who has authority over the actions and performance of others in a professional setting.
Definition of "Principal" as a party with decision-making power
This definition connects "Principal" to decision-making.
"Principal" refers to the party who holds the ultimate decision-making authority in a contract or relationship.
Definition of "Principal" as a key executive in a corporation
This definition ties "Principal" to corporate roles.
"Principal" refers to an executive or officer within a corporation who plays a critical role in strategic decisions, governance, and management.
Definition of "Principal" as the governing entity
This definition links "Principal" to governance.
"Principal" means the governing body or leadership of an entity, responsible for directing policies and overseeing key decisions.
Definition of "Principal" as the original sum in a financial transaction
This definition connects "Principal" to financial transactions.
"Principal" refers to the original amount involved in a financial transaction, excluding any interest, dividends, or additional costs.
Definition of "Principal" as a trustee or trust owner
This definition ties "Principal" to trusts.
"Principal" refers to the party for whom a trust is created, benefiting from its assets and governed by the terms set in the trust document.
Definition of "Principal" as a leading decision-maker in a legal matter
This definition links "Principal" to legal authority.
"Principal" means the individual or entity with the legal authority to make binding decisions in a matter, often in relation to contracts or disputes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.