Section 194 Indian Contract Act 1872
Section 194 of the Indian Contract Act 1872 is about Relation between principal and person duly appointed by agent to act in business of agency. It is under “Sub-agents” of CHAPTER X of the Act. CHAPTER X is titled AGENCY.
Relation between principal and person duly appointed by agent to act in business of agency
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
(a) A directs B, his solicitor, to sell his estate by auction, and to employ an auctioneer for the purpose. B names C, an auctioneer, to conduct the sale. C is not a sub-agent, but is A’s agent for the conduct of the sale.
(b) A authorizes B, a merchant in Calcutta, to recover the moneys due to A from C & Co. B instructs D, a solicitor, to take legal proceedings against C & Co. for the recovery of the money. D is not a sub-agent, but is solicitor for A.
See also:
Section 193 Indian Contract Act 1872 (Agent’s responsibility for sub-agent appointed without authority)
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