Undisclosed Agency Law and Legal Definition

In an undisclosed agency, an agent deals with a third party who does not have knowledge that the agent is acting on a principal’s behalf. The agency being undisclosed does not prevent the third party from seeking redress from the principal or the agent. Often there is an implied agency relationship with the third party, even though the agent is legally bound to represent the opposite party to the transaction. However, in many states licensed agents are required to disclose formally the agency relationships.