A more thorough explanation:

Definition: A first-degree principal is the chief or primary person who is most important in a particular situation. It can also refer to someone who authorizes another person to act on their behalf as an agent.

For example, in a company, the CEO is the first-degree principal because they are the most important person in the organization. In terms of agency law, a person who authorizes another person to act on their behalf is also a first-degree principal.

There are two types of first-degree principals:

• Apparent principal: A person who, by their actions, makes it seem like someone else is authorized to act as their agent. For example, if a store owner allows an employee to handle all customer complaints, the employee may be seen as an apparent principal.
• Disclosed principal: A principal whose identity is revealed by the agent to a third party. For example, if a real estate agent is selling a property on behalf of a homeowner, the homeowner is a disclosed principal.

These examples illustrate the definition of a first-degree principal by showing how they are the most important person in a particular situation or how they authorize someone else to act on their behalf.