Customers in the context of agency practice are referred to as:

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

In the context of agency practice, customers are referred to as third parties. This refers to individuals or entities that are not part of the agency relationship but are affected by the actions of either the agent or the principal. When an agent acts on behalf of a principal, third parties are those who interact with the agent in the course of business transactions or negotiations.

It's important to differentiate between the roles within the agency relationship. Principals are those who authorize an agent to act on their behalf, while agents are the individuals who have the authority to represent the principals in dealings. Clients typically refer to those who are engaged in a direct service or consultative relationship, often implying a more personal or fiduciary relationship than what is implied with third parties. Therefore, third parties encompass all customers or individuals who may be affected by or interested in the interactions between agents and principals without being directly involved in the agency relationship itself.

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