Maryland Security Guard Practice Exam 2025 – Complete Preparation Guide

The term that describes the legal authority to act on behalf of another is "Agency." In a legal context, agency refers to a relationship where one party, known as the agent, is authorized to act for another party, known as the principal. This relationship allows the agent to create contractual obligations and perform duties on behalf of the principal, which is critical in various professional fields, including law and business.

Understanding agency is essential in a security context because security personnel may act as agents of their employers or clients, making decisions or taking actions that directly impact the interests and responsibilities of the principal they represent. This implies not only the ability to act but also the responsibility and accountability that come with those actions.

In contrast, the other terms do not encapsulate this specific legal relationship. A contract refers to an agreement between parties; liability involves legal responsibility for actions or omissions; and authority generally denotes the power to make decisions, without necessarily implying a formal relationship or the ability to represent someone else legally.