Rights of an undisclosed principal in an agency relationship

Rights of undisclosed principal

• If the third party elects to sue the principal and not the agent, he must allow the principal the benefit of all the payments made by him to the agent on account of the contract before the agency was disclosed.
• If a cause of action has arisen in favour of undisclosed principal he can enforce his rights under the contract against the third party, provided that agent had the authority to act on his behalf at the time the contract was made. But an undisclosed principal has no right that his is the principal himself.