Legal Definitions - undisclosed agency

Undisclosed agency refers to a situation where an agent acts on behalf of a principal without revealing the identity of the principal to a third party. This type of agency is created by an express or implied contract or by law.

For example, if a real estate agent shows a property to a potential buyer without disclosing the identity of the owner, the agent is acting as an undisclosed agent. The buyer may assume that the agent is the owner or has the authority to sell the property, and the owner may be bound by any agreements made by the agent.

Undisclosed agency can be risky for both the principal and the third party, as it can lead to misunderstandings and disputes. It is important for all parties involved to be aware of the identity of the principal and the scope of the agent's authority.