Difference Between Sub-Agent and Substituted Agent
Difference between sub-agent and substituted agent is discussed in this article.
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| Difference Between Sub-Agent and Substituted Agent |
Sub-Agent Meaning
Sub-agent meaning is defined under section 191 of the Indian Contract Act, 1872, it is provided that 'A sub-agent is a person employed by and acting under the control of the original agent in the business of the contract of agency.
Therefore, the original agent is employed by the principal and the sub-agent is employed by the original agent who works under his control and authority.
Substituted Agent Meaning
A substituted agent meaning is defined under section 194 of the Indian Contract Act, 1872, it is defined as the person nominated by the original agent with the knowledge and consent of the principal to work under the authority of the original agent in the business of the contract of agency.
Difference Between Sub-Agent and Substituted Agent
Difference between sub-agent and substituted agent can be broadly classified in the following manner;
| Sub-Agent | Substituted Agent |
| All the directions and control are given by the original agent to the sub-agent. | All the directions and control are given by the principal to the substituted agent. |
| Sub-agent works under the authority of the original agent. | A substituted agent works under the authority of the principal. |
| Sub-agent is appointed by the original owner with the consent of the principal. | The substituted agent is directly appointed by the principal |
| The principal cannot directly control the sub-agent but can control it through the original agent. | The principal can directly control the substituted agent. |
| The sub-agent is made responsible for all his acts to the original agent. | The substituted agent is made responsible for all his acts directly to the principal. |
| Sub-agent is held liable to the original agent for any acts done by him. | A substituted agent is held liable to the principal for any acts done by him. |
| The privity of the sub-agent is with the original agent, therefore there is no privity of contract between the sub-agent and the principal. | There is direct privity between the principal and the substituted agent. |
| The sub-agent cannot file a suit against the principal or be sued by the principal. | Whereas, the substituted agent can be sued by the principal or file a suit against the principal. |
| Remuneration to the sub-agent pays by the original agent through his commission. | Remuneration to the substituted agent is directly paid by the principal |