disclosed agency
Quick Summary
In business law, agency refers to a relationship where one person (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.
In continental European legal systems, agency rules generally require the agent to openly disclose that they are acting on behalf of a principal. If the agent does not disclose this, the legal consequences of the transaction typically fall solely on the agent.
In contrast, common law systems, including those in England and the United States, allow for undisclosed agency. Under certain conditions, an undisclosed principal can sue or be sued by a third party, even if their identity was not revealed at the time of the transaction. This wider concept of agency is particularly relevant in commercial transactions.1
Ask Britannica AI about this topic
Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.
