Undisclosed Agency: An Analysis
Karthik Varma O.P. Jindal Global University
ABSTRACT
The Doctrine of Undisclosed Agency, though perceived as an anomaly by English jurists, holds significant value for French lawyers as a tool to grasp the complexities of the agency problem, while German legal experts view it as a catalyst for legal progress. Despite its centuries-old prevalence, controversies persist around this concept, including debates over the rights of third parties, the obligations and entitlements of undisclosed principals, and the roles of agents. Early cases like Scrimshire v. Alderton and Smith & Snipes Hall Farm Ltd. V. River Douglas Catchment Board have delved into the rights of undisclosed principals.
In Indian law, echoes of undisclosed agency resonate in sections 230 and 231 of the Contract Act. This article aims to dissect the rights and remedies available to third parties in pursuing undisclosed principals or agents, and vice versa. It will explore the stance on this matter in American law and Indian law, examining interpretations of various sections of the Indian Contract Act relating to undisclosed agency, and pondering the question of whether it should be permitted at all.
