Undisclosed principal

Updated: Aug 20, 2021

If an agent acts without indicating that he is acting as agent, third parties, on discovering the true state of affairs, may elect to treat the principal or the agent as the contracting party, i.e. they may treat the agent as principal. If the identity of the principal is sufficiently important to him, the third party may be able to avoid the contract.

Reference: The Penguin Business Dictionary, 3rd edt.

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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.