Indian Contract Act Section 194 — Relation between principal and person duly appointed by agent to act in business of agency
CHAPTER X AGENCY — Sub-Agents
Commercial / Corporate
Summary
An agent may have the authority, either stated explicitly or implied by the circumstances, to choose someone else to act for the principal in the agency's business. When the agent uses that authority and names another person for this role, that named person is not considered a sub-agent. Instead, that person becomes an agent of the principal directly, but only for the specific part of the agency's business that has been handed over to them.
Official Text
Where an agent, holding an express or implied authority to name another person to act for the principal in the business of the agency, has named another person accordingly, such person is not a sub-agent, but an agent of the principal for such part of the business of the agency as is entrusted to him. Illustrations