The relationship in which one party acts as a representative for another is called:

The agency relationship is a legal concept where one party, known as the agent, is authorized to act on behalf of another party, the principal, in dealings with third parties. This relationship creates a framework within which the agent has the authority to make decisions and take actions that legally bind the principal. The agent is expected to act in the best interest of the principal, and this duty of loyalty, as well as fiduciary responsibility, is a key part of the relationship.

Understanding the agency relationship is crucial in many fields, including business law and security management. It helps clarify the expectations and responsibilities of each party involved. In this context, the agent's actions directly impact the principal's legal and financial standing. This makes a solid understanding of such relationships important for anyone involved in security functions, as they often require representing their organization or clients.

The other choices reference different types of relationships that do not specifically embody the concept of representation on behalf of another party. A contractual relationship involves an agreement between parties but does not imply one party is acting as a representative of the other. A fiduciary relationship entails a trust-based connection where one party has the duty to act in the best interest of another, but it doesn't specifically indicate the authority to represent. A partnership relationship