First dealing with Sara, the issue in the present case is whether Sara is within her duty to inform any third party about the position she holds as an agent to Terrence. The issue is whether an agent is duty bound to inform any third party regarding the relationship that exists between the principal and the agent? Two parties are necessary to make a contract who rules their authority from the agreement, whereas in an agency law, the parties are three in number, the principal, the agent and the third party