In an agency relationship if the third party knows the identity of the entrusting party it will not sign the contract whether it constitutes fraud

or not. This is because the third party needs to know who they are entering into a contract with, and if they are dealing with an agent, they need to know who the principal (entrusting party) is. If the third party is not aware of the identity of the entrusting party, it could lead to confusion and potential legal disputes.

Additionally, if the agent conceals the identity of the entrusting party, it could be considered fraudulent behavior. The agent has a duty to disclose the identity of the principal to the third party, and if they fail to do so, it could be seen as misrepresentation.

Overall, transparency and disclosure are key in agency relationships, and all parties involved should be aware of each other's identities and roles in the transaction