Undisclosed Principal
/ʌnˈdɪskloʊzd ˈprɪnsəpəl/
Definitions
- (n.) A principal whose identity is not disclosed by an agent to a third party during a transaction, making the agent appear as the sole party to the contract.
The court held that the undisclosed principal was liable for the contract entered into by the agent.
Forms
- undisclosed principals
Related terms
See also
Commentary
When drafting, clearly distinguish the roles and liabilities of the undisclosed principal versus the agent, as third parties are unaware of the principal’s involvement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.