A sub-agent is a person appointed by an agent to perform tasks or assist in carrying out duties on behalf of the principal. The sub-agent works under the agent, but their actions still affect the principal.
Provisions Related to a Sub-Agent
1. Appointment
An agent can appoint a sub-agent only if:
- The principal has allowed it, or
- The nature of the work requires the involvement of a sub-agent.
2. Responsibility
The agent is responsible for the actions of the sub-agent. If the sub-agent makes a mistake, the agent is accountable to the principal.
The sub-agent does not have a direct relationship with the principal unless the principal has directly approved the sub-agent.
3. Duties of the Sub-Agent
The sub-agent must follow the instructions given by the agent.
They must act in the best interest of the principal while performing their tasks.
4. Payment
The sub-agent is usually paid by the agent unless the principal agrees otherwise.
5. Liability
If the sub-agent acts outside their authority, the agent and sub-agent can be held liable for any loss or damage caused to the principal.
The sub-agent must maintain honesty and loyalty in their work.
6. Termination
If the agent’s authority is revoked or terminated, the sub-agent’s authority also ends automatically.
A sub-agent helps an agent carry out their duties for the principal. However, their appointment and actions must comply with certain conditions, ensuring the principal’s interests are protected.