Which of the following can be a principal in an agency relationship?

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The key idea is that the principal is the party who authorizes the agent to act on their behalf and is bound by the agent’s actions within the agent’s authority. An individual has the legal capacity to appoint someone to act for them, enter contracts, and supervise the agent’s conduct, making them a valid principal. A dog, rock, or plant cannot appoint an agent or participate in contracts, so they lack the capacity to be principals in an agency relationship.