Final answer:
The correct answer is option a. The unidentified client in the scenario where Adam acts as an agent is a partially disclosed principal, which refers to a situation where the existence but not the identity of the principal is known to the third party.
Step-by-step explanation:
When Adam acts as an agent on behalf of an unidentified client, he is operating within the framework of agency law, where the principal is the party on whose behalf the agent acts. In this scenario, the correct characterization is that the unidentified client is an undisclosed principal.
An undisclosed principal refers to a situation where the agent, Adam in this case, does not reveal the identity of the client to the other party, Beth. While Adam is the immediate contracting party, the undisclosed principal is the ultimate entity for whom Adam is acting.
The undisclosed principal may choose to remain anonymous for various reasons, such as strategic business considerations or confidentiality concerns.
In dealings with undisclosed principals, legal implications arise. For instance, if Adam fails to fulfill the terms of the contract, Beth may later discover the existence of the undisclosed principal and hold them responsible. This underscores the importance of understanding the relationships and obligations involved in agency agreements.
In contrast, a disclosed principal is one whose identity is revealed to the other party, a non-existent principal is a fictional or imaginary entity, and a partially disclosed principal involves revealing some, but not all, details about the principal. However, based on the information provided, the most fitting designation is an undisclosed principal.