In which type of agency does the agent reveal their agency status but not the identity of the principal?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

In a partially disclosed agency, the agent informs third parties that they are acting on behalf of a principal, but they do not reveal the identity of that principal. This situation can arise in various business contexts, where the agent seeks to maintain the principal's anonymity while still entering into contracts or negotiations.

This type of agency allows for the agent to operate on behalf of the principal without disclosing who the principal is, which can be important for reasons ranging from privacy to strategic concerns. The third party knows they are dealing with an agent but lacks full information about the principal, creating a specific legal context in which certain liabilities and obligations can arise.

In contrast, a fully disclosed agency would require that both the agent and the principal are known, allowing the third party a complete understanding of the relationships involved. Similarly, dual agency involves the agent representing both parties in a transaction, which is a different configuration entirely. Lastly, independent agency pertains to agents operating without the designated authority of a principal, which does not apply here since the agent is clearly acting on behalf of someone else.

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