THE comparatively recent case of Collins v. Associated Greyhound Racecourses, Ltd. has raised in a forcible manner two old difficulties—namely, the legal position of undis–closed principals, and, as a corollary, the meaning of ‘person–ality,’especially in contracts involving undisclosed principals.
We are here concerned with a situation in which A, an undisclosed principal, employs B, an agent, to contract with C, a third party, in B's own name. By ‘undisclosed principals’ here are meant principals whose existence is not known to the third party and not principals who, known to be existent by the third party, are nevertheless not identified by name. By ‘agent’ is meant a person who in his own name contracts ostensibly for his own account, but behind whom there stands an undisclosed principal.
Before discussing Collins' Case we propose first to examine the general position of undisclosed principals.