(c) Both a sub-agent and a substituted agent are appointed by the agent. However, there are some points of distinction between the two. Explain.
Answer (1)
In the context of agency law, both a sub-agent and a substituted agent are types of agents that can be appointed by an original agent. However, there are distinct differences between the two.
Sub-Agent:
Who: A sub-agent is appointed by the original agent to assist in the performances of the duties delegated to the agent.
Scope of Authority: A sub-agent's authority is derived from the original agent, and they work under the control and direction of this agent. They may be employed when the original agent needs help or cannot complete all tasks themselves.
Liability: The original agent is typically responsible for the acts of the sub-agent vis-à-vis the principal as if they were their own acts.
Relationship with Principal: The sub-agent generally does not have a direct contractual relationship with the principal unless the principal consents to the appointment and recognizes the sub-agent's position.
Substituted Agent:
Who: A substituted agent is appointed as a replacement for the original agent. This usually occurs when the original agent cannot perform their duties.
Scope of Authority: A substituted agent’s authority comes directly from the terms of the original agreement between the principal and the original agent or is granted specifically by the principal.
Liability: A substituted agent acts as a direct agent of the principal, with the same obligational structure as the original agent.
Relationship with Principal: A substituted agent has a direct contractual relationship with the principal and is responsible for the duties and actions as any original agent would be.
In summary, the primary distinctions lie in the extent of liability, the direct relationship with the principal, and the nature of authority granted to each type of agent.
