Definitions (5)
Related Terms
1. Law: (1) A party who designates another (the agent) to act on his or her behalf. (2) A party that has the primary responsibility in a liability or obligation, as opposed to an endorser, guarantor, or surety. (3) A person who commits a crime, takes an active part in its commission, or directly or indirectly counsels or procures another person to commit it.
2. Commerce: A major party in a business transaction.
3. Contracts: A client who awards a contract to a contractor for completion of a job or project in accordance with terms of the contract. Also called owner.
4. Finance: Capital as distinct from the income (interest) derived from it.
5. Securities: The par value of a security.

Use 'principal' in a Sentence

The five businesses looking for new office space elected Jack to be the Principal agent for purchasing the real estate property to build their new office tower.
19 people found this helpful
The principal beneficiary of the will received two-thirds of the man's estate, while the other members of the family divided up the remaining third.
17 people found this helpful
Danielle's parents were the principal investors in her business, so when she became successful, she bought them a new house.
16 people found this helpful