In the legal relationship of agency, who is authorized to transact business on behalf of the principal?

In the context of agency relationships, the agent is the individual authorized to represent and act on behalf of the principal. The agent is responsible for making decisions and entering into agreements that bind the principal to those transactions. This relationship is built on trust and confidence, where the principal delegates authority to the agent to perform specific acts or make decisions that affect the principal's interests.

The agent acts within the scope of authority granted by the principal, which can be defined broadly or limited to specific tasks depending on the nature of the agency agreement. Examples of agents in real estate include real estate agents and brokers who negotiate sales, leases, or purchases on behalf of their clients.

Other choices, such as client, broker, and partner, do not adequately represent the role of someone who acts on another's behalf in an agency context. The client is typically the principal in this scenario, the broker may act as an agent but is not synonymous with the agent themselves, and a partner refers to someone involved in a partnership, which can complicate the agency relationships involved.