Disclosure of Principals

Question 1

Disclosed Principal

Answer 1

Third party knows:

(1) A is acting on behalf of P; and
(2) P’s identity

In these scenarios, the parties to the contract are the THIRD PARTY and the PRINCIPAL

Question 2

Partially Disclosed Principal

Answer 2

Third party knows A is working on behalf of a P, but does not know identity of P

In these scenarios, the parties to the contract are the THIRD PARTY, the PRINCIPAL, and the AGENT.

Question 3

Undisclosed Principal

Answer 3

Third party knows neither A’s status as an A nor P’s identity

In these scenarios, the parties to the contract are the THIRD PARTY and the AGENT

Whether an undisclosed P is also party to the contract depends on whether A had the authority to bind P to contract