An undisclosed principal is not liable to a third party for failing to perform a contract entered into by an agent acting within the scope of his or her authority.

Question

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An undisclosed principal is still liable to a third party for contracts entered into by their agent acting within the scope of their authority, even if the third party was unaware of the principal's existence at the time of the contract.

An Undisclosed Principal Is Not Liable to a Third Party