Grinder v. Bryans Road Building & Supply Co.

The liability of an undisclosed principal has been called an "anomaly” from the standpoint of the law of contracts. 1 Here we focus on a particular aspect of the anomaly. Where the creditor obtains a final judgment against one of the parties to the agency relationship, after learning of the existence and identity of the principal, the creditor is precluded from obtaining judgment against the other party. This is so even if the first judgment is unsatisfied. Reexamination of this rule of law convinces us that it is unsound and should no longer be followed. We adopt the rule that, absent other…