The agent presented an offer. What type of principal is represented when "An undisclosed buyer" is written on the contract?

When "An undisclosed buyer" is specified in a contract, it indicates that the principal is of a type that is not revealed to the third parties involved in the transaction. This situation falls under the concept of an undisclosed principal, meaning that while the agent is acting on behalf of the principal, the identity of that principal is not known to the other parties in the deal.

In this context, the agent is authorized to act and negotiate on behalf of the undisclosed buyer without revealing their identity to others. The main implication is that the agent's actions bind the undisclosed buyer to the terms of the contract, even though the other parties do not know who the buyer actually is. This can create a unique situation in negotiations and legal responsibilities, as the buyer retains anonymity while still benefiting from the agent's work.

Other choices like illegal, partially disclosed, and fully disclosed do not apply here. Illegal does not relate to the nature of disclosure of a principal's identity in a contract. Partially disclosed would imply that some information about the principal is known, which is not the case here. Fully disclosed means that the identity of the principal is completely known to all parties, which contradicts the premise that the buyer is undisclosed. Thus, the terminology