Which of the following is a principal within the agency relationship?

Fiduciary is the principal in an agency relationship. A fiduciary is a person who has been entrusted with managing and directing another person’s assets or resources in order to achieve their best interests. This means the agent, the party hired by the principal to represent them, must behave in good faith, loyalty, and use reasonable care and skill to carry out their duties to safeguard their interest. This includes obligations such as adhering to instructions given by the principal; exercising discretion when making decisions; avoiding conflicts of interest between themselves and their client; maintaining confidentiality with regards to any information obtained while fulfilling their duties; reporting any risks or potential losses they identify which could affect the principal’s objectives; and notifying them immediately if they become aware of any changes in circumstances which may have an impact on the success of achieving these objectives.