Define the rights and responsibilities of ‘Sub-Agents’ and ‘Substituted Agents’.
Section 191 defines ‘Sub Agent’. Sub Agent is the agent of agent.
Section 192 says that if the sub-agent is properly appointed then the principal would be represented by sub-agent and also responsible for his acts in regard to the third person. Even if the sub-agent is properly appointed, there is no privity of contract between him and the principal. Simple meaning sub-agent is not directly responsible to the principal but to the agent and the reason for this is that there is no contractual relationship between the duos (principal and sub-agent). But there is an exception to this rule that in case of tortuous acts like fraud or willful wrong committed by sub-agent, the principal will be responsible for it.
Section 193 talks about when the sub-agent is appointed without authority. In such a case the principal is neither represented nor responsible for the acts of sub-agent.
Section 194 defines ‘Substituted Agent’. Substituted Agent is the agent who substitutes the original agent.
Section 195 says that while appointing a substituted agent, the agent should act in such a manner that a man with ordinary prudence would do in his own case.
Both these sub-agents and substituted agents are appointed by the agent and not by the principal. But they are very different as stated earlier that the sub-agent is the agent of the agent but the substituted agent is the agent of the principal. For the act of sub-agent, the agent is responsible (except in the case of fraud or willful wrong, where sub-agent is directly responsible to the principal) but for the acts of a substituted agent, the principal is responsible toward the third person. After appointing sub-agent, the agent continues to be responsible for his acts to his principal but in the case of the substituted agent, as soon as the substituted agent is appointed, the original agent goes out of the picture.