A major party in a transaction who authorizes an agent is known as what?

In the context of agency law, a major party in a transaction who authorizes an agent to act on their behalf is known as the principal. The principal holds the authority to make decisions and is responsible for the actions of the agent, who acts on behalf of the principal in dealings with third parties.

The relationship is established through the granting of authority, where the principal defines the scope of the agent's powers, whether it be specific tasks or broader responsibilities. This foundational concept is crucial in agency law, as it establishes the legal relationship and responsibilities between the parties involved.

The term "client" typically refers to individuals receiving services, often in a professional context, while "broker" designates an intermediary who facilitates transactions, and "agent" refers to the individual authorized to act on behalf of the principal. However, in this question, the correct designation of the party who provides that authorization is clearly the principal.