What are the types of principal?
Principals are categorized based upon whether their identity is disclosed to third parties with whom the agent interacts on their behalf. A principal can be classified as Disclosed, Partially-disclosed, or Undisclosed. These categorizations of principal are important in determining the rights and duties of the principal, agent, and third party.
What is a Disclosed Principal?
A disclosed principal’s identity is known to third parties dealing with the agent.
What is a Partially-disclosed Principal?
A partially-disclosed principal is known by third-parties to exist, but her exact identity is unknown. This type of relationship exists when there is some benefit to the principal to remain anonymous to third parties interacting with the agent.
What is an Undisclosed Principal?
The existence of an undisclosed principal is unknown to a third party. The third party believes that she is interacting only with the agent.
Related Topics
- Agency Law (Intro)
- What is an Agency relationship?
- What are the types of agents?
- Employee vs. Independent Contractor
- What are the types of principals?
- What is required to form a principal-agent relationship?
- What are the duties of a principal?
- What are the duties of an agent?
- What is the authority of an Agent to Bind Business in Contract?
- When are Agents liable to principals and third parties?
- What is Respondeat Superior?
- What is a Frolic and Detour?
- When does the Agency Relationship Terminate?