Agency

In Tennessee, the term 'principal' in an agency relationship refers to:

AThe principal broker supervising the transaction
BThe person (client) who authorizes the agent to act on their behalf✓ Correct
CThe lead buyer in a group purchase
DThe largest financial contributor to the purchase

Explanation

In agency law, the 'principal' is the party who authorizes the agent to act on their behalf. In real estate, the seller or buyer (client) is the principal and the agent acts on their behalf.

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