undisclosed principal


Also found in: Financial.

undisclosed principal

n. a person who uses an agent for his/her/its negotiations with a third party, often when the agent pretends to be acting for himself/herself. As a result, the third party does not know he/she can look to the real principal in any dispute. (See: principal, agent)

undisclosed principal

a person of whose existence a third party is unaware so that the third party does not know that the person with whom he is dealing is an agent. So far as he is concerned, the agent is really a principal dealing on his own behalf and in his own name. There is no duty on a third party to enquire whether there is an undisclosed principal. See AGENCY.
References in periodicals archive ?
These companies bought the shares for an undisclosed principal.
In other words, there is no undisclosed principal rule such as is found in common law systems.
This is a very important development because, at first, we were still not sure who the undisclosed principal is.