When an agent does not inform the third party that he or she is acting on behalf of another person,the unidentified principal is known as a(n):
A) undisclosed principal.
B) unaware principle.
C) unauthorized principle.
D) distinct principle.

Question

Quizplus · Accepted Answer

An undisclosed principal refers to a situation where an agent does not reveal to a third party that he or she is acting on behalf of another person. The third party is unaware that he or she is dealing with an agent and assumes that the agent is the principal. If a third party finds out later that there was an undisclosed principal, he or she can hold both the agent and the principal liable for any damages or losses incurred.

When an Agent Does Not Inform the Third Party That