An agreement that exists when one person (agent) is allowed to act on behalf of another person (principle). Shareholders of a company are an example of this, they appoint management to handle their affairs.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser