Types of Principal in an Agency Relationship

The video tutorial explains the concept of agency law, focusing on the disclosure levels of a principal: disclosed, partially disclosed, and undisclosed. It highlights how these levels affect the liability of both the principal and the agent in dealings with third parties. The tutorial sets the stage for further discussions on the specific liabilities of principals and agents in subsequent videos.

What is a disclosed principal in the context of agency law?

• A principal who is acting as an agent.

• A principal who is not involved in any transactions.

• A principal whose identity is known to the third party.

• A principal whose identity is unknown to the third party.

In agency law, what does it mean when a principal is partially disclosed?

• The principal is acting as an agent.

• The third party knows the principal's identity.

• The agent is unaware of the principal's identity.

• The third party knows there is a principal but not their identity.

How does an undisclosed principal affect the third party's perception?

• The third party thinks they are dealing directly with the agent.

• The third party is aware of the principal's identity.

• The third party knows the principal is involved but not their identity.

• The third party believes they are dealing with the principal directly.

Why is the level of principal disclosure important in agency law?

• It affects the potential liabilities of the principal and agent.

• It determines the agent's salary.

• It influences the principal's business strategy.

• It decides the agent's working hours.

What will be discussed in separate videos according to the transcript?

• The benefits of being an agent.

• The potential liabilities of the principal and agent.

• The process of becoming a principal.

• The history of agency law.