Section 194: Relation between principal and person duly appointed by agent to act in business of agency.

The Indian Contract Act, 1872Central Act · Act 9 of 1872

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.

Where this provision sits

Act	The Indian Contract Act, 1872
Section	194
Marginal note	Relation between principal and person duly appointed by agent to act in business of agency.
Jurisdiction	Central
Status	In force as published by the source
Judgments citing it	1

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