"Delegatus non-potest delegare". Applicability of the maxim in the law of agency.

Sub-agent Liabilities of a Principal and an Agent for the acts of a Sub-agent

The general rule is "delegatus non-potest delegare" the meaning of this maxim is that an agent to whom another has delegated his own authority (has reposed confidence), cannot delegate that authority to a third person. This rule is based on the principle that agency is a contract based on trust and mutual confidence between the parties. A principal may have mutual confidence in his agent but not in the subsequent sub-agent appointed by the agent. Section 190 of the Contract Act deals with delegation of an authority by the agent

"An agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform personally, unless by the ordinary custom or trade a sub-agent may, or from the nature of the agency a sub-agent must be employed."

 The general principle is that the agent cannot delegate his author; a third person, but there are two exceptions to this general rule. They,

(1) when the ordinary custom of trade permits employment sub-agent, or

(2) when the nature of agency demands that employment of a agent is necessary by the agent.

Besides two exceptional conditions no agent is authorised to dele his authority if the nature of his act is purely managerial and he is supposed to use his personal skill in discharge of his duty or where he is  personally required to perform his duties.

Sub-agent.-"Sub-agent" is a person employed by, and acting Under the control of the original agent in the business of the agency. (See 191, Indian Contract Act).

Legal position of sub-agent properly appointed.-Sub-age may be either properly appointed or improperly appointed. If has appointed by the agent with the authority of the principal he is called sub-agent properly appointed. If he is appointed without authority of principal, he is improperly appointed.

When the sub-agent has been appointed with the consent of principal, the principal is bound by his acts and is responsible for action as if he was an agent appointed by the principal.

The agent is responsible for acts of the sub-agent to the principal.

The sub-agent is not responsible for his acts to the principal. He only responsible for such acts to the agent.

But if the sub-agent is guilty of fraud or wilful wrong against the principal, he becomes directly responsible to the principal. (Section 19 Indian Contract Act).

Sub-agent improperly appointed:-If the sub-agent is appointed without the authority of the principal the principal is not bound by his acts. The principal is not responsible for any transaction made by the suit agent or for any act done by him. (Section 193, Indian Contract Act).

Courtesy:- Legal Point Foundation