Indian Contract Act Section 195 — Agent’s duty in naming such person
CHAPTER X AGENCY — Sub-Agents
Commercial / Corporate
Summary
When an agent chooses another agent to act for the principal, the agent must use the same level of care and judgment that a reasonably careful person would use when choosing someone for their own affairs. If the agent does this, the agent is not liable to the principal for anything the chosen agent does or fails to do.
Official Text
In selecting such agent for his principal, an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case; and, if he does this, he is not responsible to the principal for the acts or negligence of the agent so selected. Illustrations