26 February, 2016

Distinguish between Sub Agent and Substituted Agent

A sub-agent and a substituted agent can be distinguished as follows:-
Substituted Agent
1.      A sub agent is defined under Section 191 of the Contract Act.

2.      A sub agent is a person employed by and acting under the control of the original agent in the business of the agency.

3.    A sub agent is not generally responsible to the principal, but he is immediately responsible to the agent.
4.      There is no privity of contract between sub-agent and principal.
1.        Provisions regarding substituted agent is given under Sec. 194 of the Contract Act.
2.   According to Section 194 a substituted agent can be nominated by the original agent to act for the principal for a certain part of the business of the agency. He is an agent of the principal for such part of the business as is entrusted to him.
3.        A substituted agent, by his mere appointment becomes immediately responsible to the principal.

4.        A privity of contract is created between the principal and the substituted agent.

Courtesy:- Legal Point Foundation

No comments: