4.4 Agent and Principal-Definition is a legal term that defines the relationship between two parties in a contract. An agent is a person who is authorized to act on behalf of someone else, known as a principal. The principal is the party that grants the authority to the agent to act on their behalf. The agent is responsible for carrying out the tasks, requests, and duties of the principal. There are two main types of Agent and Principal- Definition: General Agents and Special Agents. General Agents are authorized to take any action required by the principal and are typically employed for a fixed amount of time. Special Agents, on the other hand, are appointed to carry out a specific task or act on behalf of the principal.