Indian Contract Act,1872

Act No : 9

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Section : Relation between principal and person duly appointed by agentto act in business of agency

194.Relation between principal and person duly appointed by agentto act in business of agency.-Where an agent, holding an express orimplied authority to name another person to act for the principal inthe business of the agency, has named another person accordingly, suchperson is not a sub-agent, but an agent of the principal for such partof the business of the agency as is entrusted to him. Illustrations (a)A directs B, his solicitor, to sell his estate by auction, andto employ an auctioneer for the purpose. B names C, an auctioneer, toconduct the sale. C is not a sub-agent, but is A's agent for theconduct of the sale. (b)A authorizes B, a merchant in Calcutta, to recover the moneysdue to A from C & Co. B instructs D, a solicitor, to take legalproceedings against C & Co. for the recovery of the money. D is not asub-agent, but is solicitor for A.

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