Partially Disclosed Principals In Contracts
Pat enters into a contract with another party, aware that the party is acting on behalf of a third person. However, Pat does not know the identity of this third person. Is this arrangement legally permissible?
A
No, Pat is not legally bound by this contract.
B
Yes, this is an example of a disclosed principal, which is common in business.
C
Yes, but the contract is only binding between the two parties known to each other.
D
No, it is unlawful to have an undisclosed principal.
E
Yes, this is an example of a partially disclosed principal.