Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Third parties definition

What does Third parties mean? In legal practice, third parties are persons or organisations that are not the principal parties to a contract, dispute, or data-processing activity but may interact with or be affected by it. The term is descriptive across contexts. In data protection law it is defined: a third party is anyone other than the data subject, controller, processor, and those acting under a controller’s or processor’s direct authority (UK GDPR/EU GDPR). cookies and similar technologies: if a service permits third parties (for example, advertising, analytics or social media vendors) to set, read or access cookies or other identifiers, those third...

Agency and third parties: authority, liability and remedies—disclosed/undisclosed principals, deeds and powers of attorney, misrepresentation and fraud, tort and conversion, payments, and breach of warranty of authority

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Practice notes

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This Practice Note addresses the relationships that arise among principals, agents, and the third parties with whom the agent transacts on the principal’s behalf. It reviews the principal’s exposure for its agent, the scope of an agent’s authority (including remedies for any excess or breach of authority), fraud and misrepresentation, and the concepts of disclosed and undisclosed principal.

Principal’s liability for acts of agent

A principal will generally be answerable for all acts carried out by an agent within the agent’s authority, whether liability sounds in contract or in tort. Authority encompasses the agent’s actual, apparent (ostensible), or usual (customary) authority. For further detail, see Practice Notes: Scope and authority of the agent and Forming enforceable contracts—agent’s authority to contract. An agent’s authority derives from the principal, and it should be recognised at the outset that the capacity to bind a principal in contract does not, of itself, determine whether an agency relationship exists. In fact, in many situations an agent will have no power to bind the principal, and that is merely one of several constraints a principal may impose on an agent’s authority...

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Web page updated on 21/05/2026

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