In the field of law, the term undisclosed principal relates mainly to the liability of an agent for obligations incurred on behalf of a principal. If the agent does not disclose the nature of his agency (the fact that he acts on behalf of another) and thus does not disclose the name of the principal, the agent may be held personally liable for his actions. If, however, the agent disclosed his agency and the name of the principal (disclosed principal), he will normally not be held liable for commitments undertaken within his authorized agency. A dummy buyer may sometimes have an undisclosed principal.
Famous quotes containing the word principal:
“For me, the principal fact of life is the free mind. For good and evil, man is a free creative spirit. This produces the very queer world we live in, a world in continuous creation and therefore continuous change and insecurity. A perpetually new and lively world, but a dangerous one, full of tragedy and injustice. A world in everlasting conflict between the new idea and the old allegiances, new arts and new inventions against the old establishment.”
—Joyce Cary (1888–1957)