David signs a contract to purchase Orrin's property. David informs Orrin that the property is being purchased for one of his clients but refuses to tell Orrin who the client is. The principal here is _____.
A) disclosed
B) undisclosed
C) partially disclosed
D) illegal

Question

Quizplus · Accepted Answer

The principal in this scenario is partially disclosed. A principal is partially disclosed when the third person knows he is dealing with an agent but does not know the identity of the principal. This is likely to occur when an agent signs a contract or negotiable instrument, indicating her status as an agent, but forgetting to identify her principal.

David Signs a Contract to Purchase Orrin's Property