A principal whose existence is known, but whose identity is not known to the third party dealing with the agent.

• A. Disclosed principal
• B. Independent contractor
• C. Partially disclosed principal
• D. Employee

Answer: (C)

Partially disclosed principal refers to a situation where the third party knows a principal exists but does not know the principal’s identity. Here, the contract is formed with the agent, but the principal can still be bound to the contract, and the third party can sue either the agent or the principal. The principal becomes the responsible party once identity is revealed and the authority is within range; the agent may still be liable if the agent acted beyond authority or misrepresented. This matches the scenario because the existence of a principal is known, but the principal’s identity is not.

Disclosed principal would have the principal’s identity known to the third party, which isn’t the case here. An independent contractor or an employee describes a different relationship, not the disclosure status of a principal in an agency context.