Indian Contract Act Section 193 — Agent’s responsibility for sub-agent appointed without authority

Summary

An agent who appoints a sub-agent without having the authority to do so is treated as the principal of that sub-agent. This means the agent is fully responsible for the sub-agent’s actions, both to the original principal and to any third parties who deal with the sub-agent.

The original principal is not considered to be represented by the sub-agent, and the principal is not responsible for anything the sub-agent does. Also, the sub-agent has no responsibility or duty towards the original principal.

Official Text

Where an agent, without having authority to do so, has appointed a person to act as a sub-agent, the agent stands towards such person in the relation of a principal to an agent, and is responsible for his acts both to the principal and to third persons; the principal is not represented, by or responsible for the acts of the person so employed, nor is that person responsible to the principal.

Related Judgments

• Advocate with Mr. Piyush Sanghi; Mr. Rohan Wadhwa, Ms. Khushbu; Sahu, vs DIRECTORATE OF ENFORCEMENT — Delhi High Court (2025)
• dated 15.03.2022 passed at 02.30 pm); (This order is again modified vi vs The Directorate of Enforcement, and Ors — Bombay High Court (Mumbai Principal Seat) (2022)
• LALJI HARIDAS vs STATE OF MAHARASHTRA AND ANOTHER — Supreme Court of India (1964)