i. Named Principal:
When an agent enters into a contract on behalf of a named principal, the third party is aware of the identity of the principal. The legal consequence of this is that the principal, and not the agent, is held liable for the contract. The agent is merely facilitating the agreement and does not bear liability unless they exceed their authority or act fraudulently. (3 Marks)

ii. Unnamed Principal:
In an agency transaction involving an unnamed principal, the third party knows the agent is acting for a principal but does not know the principal’s identity. The legal consequence here is that both the agent and the principal can be held liable for the contract. The third party can choose to enforce the contract against either the agent or, upon discovery of the principal’s identity, the principal. (3 Marks)