Both a sub-agent and a substituted agent are appointed by the agent, however, there are some points of distinction between the two. Elaborate any 6 points.
OR
Both a sub-agent and a substituted agent are appointed by the agent. But, however, there are some points of distinction between the two. Explain any three points under the Indian Contract Act, 1872.

Question

Accepted Answer

S.No. 	 Sub Agent 	 Substituted Agent
1. 	 A sub-agent does his work under the control and directions of agent. 	 A substituted agent works under the instructions of the principal.
2. 	 The agent not only appoints a sub-agent but also delegates to him a part of his own duties. 	 The agent does not delegate any part of his task to a substituted agent.
3. 	 There is no privity of contract between the principal and the sub-agent. 	 Privity of contract is established between a principal and a substituted agent.
4. 	 The sub-agent is responsible to the agent alone and is not generally responsible to the principal. 	 A substituted agent is responsible to the principal and not to the original agent who appointed him
5. 	 The agent is responsible to the principal for the acts of the sub-agent. 	 The agent is not responsible to the principal for the acts of the substituted agent.
6. 	 The sub-agent has no right of action against the principal for remuneration due to him. 	 The substituted agent can sue the principal for remuneration due to him.
7. 	 Sub-agents may be improperly appointed. 	 Substituted agents can never be improperly appointed.
8. 	 The agent remains liable for the acts of the sub-agent as long as the sub-agency continues. 	 The agent's duty ends once he has named the substituted agent.

Question Scenario

Suggested Answer

1. Provisions of the Act / Applicable Law

Ready to Practice More Law Cases?