In a power of attorney arrangement, the person on whose behalf the agent acts is called the ______.

• A. Beneficiary
• B. Principal
• C. Trustee
• D. Client

Answer: (B)

The principal is the person who gives someone else the authority to act on their behalf. In a power of attorney, the agent (often called the attorney-in-fact) acts for the principal, handling the principal’s matters under the document. A beneficiary is someone who benefits from a will or trust, not the one granting authority; a trustee holds property for others in a trust; a client is a generic term and not the formal role in a power-of-attorney arrangement. So the person on whose behalf the agent acts is the principal.