Select all that apply A principal is a person who introduces parties that may wish to transact business. The act of introducing those parties in no way binds them to the transaction. The principal has authority to create relations between its principal and a prospective customer. Principal is broker, Agent is lender. A principal and/or an agent is a person who introduces parties that may wish to transact business. The act of introducing those parties in no way binds them to the transaction. An agent is a person who introduces parties that may wish to transact business. The act of introducing those parties in no way binds them to the transaction. The agent has authority to create relations between its principal and a prospective customer. Agent is broker, Principal is lender.