Legal principle applicable in the case
- Smith Lemaiyan is an undisclosed principal.
- Jimmy Cheney is a third party.
- Since Aggrey Mchuzi (the agent), has contracted/lent money in his own name, he is liable to jimmy Cheney personally.
- If the third party (Jimmy Cheney) comes to know of the principal before obtaining judgement against the agent, he may sue either the principal or the agent or both.
- The principal may intervene and sue the third party for- non-performance of the contract.
- If the principal discloses himself before the contract is completed, the third party may refuse to fulfil the contract, if he can show that he could not have entered into the contract, if he had known who the principal was.
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