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Undisclosed principal: Difference between revisions
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An undisclosed principal is a {{tag|principal}} for whom an {{tag|agent}} acts where the agent does not reveal the {{tag|principal}}'s identity. It is not - or ought not - apply where an agent has neglected to mention the agency relationship altogether. An [[agent]] who has failed to reveal he is an agent at all (regardless for whom) - call that fellow an [[undisclosed agent]] - is better known as a [[principal]]. Or a liar. | An undisclosed principal is a {{tag|principal}} for whom an {{tag|agent}} acts where the agent does not reveal the {{tag|principal}}'s identity. It is not - or ought not - apply where an agent has neglected to mention the agency relationship altogether. An [[agent]] who has failed to reveal he is an agent at all (regardless for whom) - call that fellow an [[undisclosed agent]] - is better known as a [[principal]]. Or a liar. | ||
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It is unquestionably the general rule of our law that an [[undisclosed principal]], when subsequently discovered, may, at the election of the other party, if exercised within a reasonable time, be held upon all simple [[non-negotiable]] contracts made in his behalf by his duly authorized {{tag|agent}}, although the contract was originally made with the {{tag|agent}} in entire ignorance of the {{tag|principal}}. | |||
::Mechem on Agency, 2nd Ed., § 1731 | |||
Where an agent strikes a bargain without revealing its principal’s identity, it puts the counterparty at a disadvantage, since the counterparty does not, and cannot, know against whom it should seek to enforce the bargain. | Where an agent strikes a bargain without revealing its principal’s identity, it puts the counterparty at a disadvantage, since the counterparty does not, and cannot, know against whom it should seek to enforce the bargain. | ||