ADVERTISEMENTS:

5 Most Important Differences between Sub-Agent and Substituted Agent

5 Most Important Differences between Sub-agent and Substituted Agent are given below:

Sub-Agent:

1. Sub-agent is appointed by an agent to assist him in business of agency.

ADVERTISEMENTS:

2. There is no privities of contract between the sub-agent and the principal.

3. A principal cannot sue directly the sub- agent except when he was properly appointed and he commits wilful wrong or fraud.

4. The sub-agent works under the control and direction of the agent.

5. The agent is responsible to the principal and the third party for the acts of the sub-agent.

Substituted Agent:

ADVERTISEMENTS:

1. Substituted agent is named by the agent, but appointed by the principal.

2. There is privities of contract between the principal and the substituted agent.

3. A principal can directly sue or sued upon by, the substituted agent.

4. The substituted agent works under the control and guidance of the principal.

ADVERTISEMENTS:

5. The agent is not responsible for the actions or negligence of the substituted agent.