Due today – business law input 300 words

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I need 2 (4 total) paragraphs in regard to each of the essays below fitting the following reqs:

  • What did you learn from your classmate’s posting?
  • What additional questions do you have after reading the posting?
  • What clarification do you need regarding the posting?
  • What differences or similarities do you see between your posting and other classmates’ postings?



150 words in 1-3 paragraphs per essay.


Essay #1

In having an agency working you us as the principal we must know there are three types of principals; they are the disclosed, undisclosed and partially disclosed. Within all three the agency has some contractual duties to us as the principal. Within all three the agency will be given some authority to act on our behalf. Because we are giving the agency authority to act on our behalf we may be liability are some of what the agency does. As a disclosed principal this means that the third party will be aware that the agency is hired by us and is working on our behalf. An example of this is an insurance company hires an agency to you sell their product and is refer to that agency whenever anyone wants to buy their products. If that agency quoted something incorrectly then we would be responsible to fix the issue. An undisclosed principal is a principal that the third party is not aware of. An example of an undisclosed principal is a hotel owner hires a management company to run the hotel for him. As the management company they have they authorization to run the hotel however they deems is profitable. However is the hotel is been sued them they both share some responsibility. And a partially disclosed agency is a hotel the hotel that hires a security agency to guard the property. The security agency wear their own uniform an act as its own company. If a car is broken into on the property then both agency and principal is responsible.

The responsible of on agency is to represent themselves in you the principal in a professional manner and to abide by the contract that they engaged in with the principal. The agency should not go over what they are authorized to do.

I believe is it is fair for the third party to deal with the undisclosed than knowing they are dealing with an agent. My reasons behind this is that like the hotel example I gave above. The hotel owner gives the hotel management company full authorization the handle the affairs of the hotel. If the owner wanted to run the hotel themselves they would not hire the management company. Sometimes a hotel owner is just an investor and they do not know how to run a hotel. If the customer or third party has an issue dealing with the principal or the investor may not know how the resolve the issue.



Essay #2

 An overview of the concept of agency law pertaining to agent, agents or agency where the agent is performing acts on the behalf of a principal with a third party.  The three principals that will be covered are (fully) disclosed, undisclosed and partial disclosed.

            One of the main reasoning behind disclosure of any type is how much authority the agent has on behalf of the client also known as the principal.  The agent is the party that has permission from the client to make decision or complete a task for the client, the client is known as the principal who hired the agent to complete a specific task and the third party is who the agent will be transacting contractual business.

Full Disclosed

Fully disclosed is the amount of information that the third party knows that the agent is working on the behalf of the principal, and who’s the principal party, and the principal is bound by the contract.  The agent has no liability for the contract unless he fails to represent agent’s capacity, then the third party can sue both the agent and principal.  The agent has authority to sign a contract on the behalf of the fully disclosed principal by must do so with his signature followed by “an agent” for said principal unless there will be some liability issues (Cheeseman, H.R. (2013).


In the undisclosed process the third party does not know the identity of the principal or even if there is an existence of one the agent has all rights of the principal party for the contract and decision making process, also putting him as a liability party if anything is subject to digression.  This is used when the principal party thinks if their identity is known the contract or agreement would change an example if Justin Bieber were to move into Miami area the purchase price of a said property value would increase.  Oprah Winfrey land purchase in Colorado where the hiking trail would be closed if she was anonymous the hikers would not know who to pursue.  In both of these examples if an agent had undisclosed principal the property would have been cheaper with less law involved.

Partial Disclosed

In a partial disclosed, the agent is acting for the principal but the third party does not know the principal because the principal is not mention or the failure to be acknowledged, the agent is liability in this type of contract because of the principal is unknown and the agent’s reputation, integrity, and credit speaks for them; unless the third party and agent come into an agreement.  This method can be completed by mistake or not express the identity of the principal.  An example is that the agent signs their name and end with the word agent, this is partially disclosed contract (Cheeseman, H.R. (2013).


In my opinion for a situation where a third party is dealing with a undisclosed principal is that the agent can possible negotiate a better deal; conceal an investment, the third party may think it is a business take over, or sometime making a donation to charity in secret maintaining privacy as an anonymous giver and other charity organization will not seek a donation from the principal.  Some owners of companies just do not want to deal with a particular individual (principal) due to trust issue or for other such reason.

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