Undisclosed Agency and Damages

The doctrine of the undisclosed principal allows a principal, whose existence was unknown in a contract entered into between the principal's agent and the other contracting party (in the language of agency law the "third party"), to intervene in such a contract by suing on it. The agent, being a party to the contract, can also bring an action on it, though it is sometimes said that the agent's right to do so is subsidiary to that of the principal and must give way to the latter if the principal wishes to intervene. Similarly, a third party who did not know of the principal's existence at the time the contract was entered into can choose to sue the principal on the contract in addition to the agent if the third party finds out later that the contract was intended to be entered into for the benefit of the principal.