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:
“This place is the Devil, or at least his principal residence, they call it the University, but any other appellation would have suited it much better, for study is the last pursuit of the society; the Master eats, drinks, and sleeps, the Fellows drink, dispute and pun, the employments of the undergraduates you will probably conjecture without my description.”
—George Gordon Noel Byron (1788–1824)