Which type of agency does not require disclosure of the principal's identity to the third party?

In an undisclosed agency, the principal's identity is not revealed to the third party. This means that when the agent acts on behalf of the principal, the third party is unaware that a principal exists at all. The agent essentially acts in their own name, and the third party interacts only with the agent. Because the third party does not know about the principal, the agent takes on full liability for any obligations that arise in the contract or transaction.

This type of agency can arise in situations where the principal wishes to maintain secrecy for various reasons, such as protecting business strategies, competing effectively in the market, or for personal privacy. Thus, in an undisclosed agency, there is no obligation for the agent to disclose the principal's identity to the third party, making it distinctly different from fully or partially disclosed agencies where the existence and sometimes the identity of the principal are made clear to the third party. These distinctions highlight the importance of transparency and the level of responsibility an agent has based on the nature of the agency relationship.