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 principal.
C) unauthorized principal.
D) distinct principal.

Question

Quizplus · Accepted Answer

An undisclosed principal is one in which the agent does not inform the third party that they are acting on behalf of another person. The third party is unaware that there is a principal involved in the transaction. As a result, the contract is between the third party and the agent, and the undisclosed principal becomes bound by the contract.

When an Agent Does Not Inform the Third Party That