An undisclosed principal can require the third party to fulfill the contract unless the undisclosed principal was expressly as a party in the written contract, the contract is a negotiable instrument signed by the agent with no indication of signing in a (n) capacity, or the performance of the agent is to the contract, thus allowing the third party to refuse the principal's performance.

True Or False?

Question

Gregory Mendez

Business

18 December, 04:11

An undisclosed principal can require the third party to fulfill the contract unless the undisclosed principal was expressly as a party in the written contract, the contract is a negotiable instrument signed by the agent with no indication of signing in a (n) capacity, or the performance of the agent is to the contract, thus allowing the third party to refuse the principal's performance.

True Or False?

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Answers (2)

Know the Answer?

Shawn · Answer 1

True

Explanation:

These statements are true when it comes to an undisclosed principal not requiring a third party to fulfill the contract. An undisclosed principal is a principal whose identity is unknown by the third party. In these cases, the third party has no knowledge of the fact that the agent is acting in an agency capacity until the moment the contract is made.

Allyson Sampson · Answer 2

The statement is: True.

Explanation:

An undisclosed principal is an individual who hires an agent to act on his or her behalf in front of a third party and the latter does not have knowledge of who the principal could be. However, the undisclosed principal can enforce the fulfillment of a contract unless:

The undisclosed principal was explicitly excluded from the contract. The agent signed as the principal of the contract. The contract is subject to the performance of the agent only.