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:
“Today, only a fool would offer herself as the singular role model for the Good Mother. Most of us know not to tempt the fates. The moment I felt sure I had everything under control would invariably be the moment right before the principal called to report that one of my sons had just driven somebody’s motorcycle through the high school gymnasium.”
—Mary Kay Blakely (20th century)