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Agency law
Liability and duties
A contract entered into by an agent binds the third party and the
principal for whom the agent has acted. The circumstances differ
depending on whether the principal is disclosed or undisclosed.
Where the principal is disclosed
A principal is disclosed where his existence has been made known to the third party.
It is not necessary for the principal to be identified to the third party.
As a general rule, the contract is made between the principal and the third party and
the agent is neither liable nor entitled under the contract. However the agent will be
liable in the following circumstances:
The agent has shown an intention to undertake personal liability e.g. by signing
a contract in his own name.
Trade usage or custom.
Where the agent refuses to identify the principal.
Where the agent is acting on behalf of a fictitious principal.
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