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. Is C a sub-agent?
Find the answer to the mains question of the Law of Contract only on Legal Bites.
Question: 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. Is C a sub-agent? [BJS 1987]Find the answer to the mains question of the Law of Contract only on Legal Bites. [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. Is C a sub-agent?]AnswerThe present proposition is borrowed from Section...
Question: 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. Is C a sub-agent? [BJS 1987]
Find the answer to the mains question of the Law of Contract only on Legal Bites. [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. Is C a sub-agent?]
Answer
The present proposition is borrowed from Section 194(a) in The Indian Contract Act, 1872. In the present case at hand, 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.
Here's the reasoning:
In the given situation, A is the principal who directs B, his solicitor, to sell his estate by auction and to engage an auctioneer. B, as the agent, is responsible for carrying out the instructions given by the principal, A. However, B appoints C as the auctioneer to conduct the sale.
Section 191 of the Indian Contract Act, which defines a sub-agent, is not directly applicable here as it addresses the scenario where an agent employs another person to perform the agency without the consent of the principal.
However, the general principles of agency law apply in this case. B, being an agent of A, has the authority to appoint a sub-agent (C) to perform some or all of the functions of the agency (conducting the auction) on behalf of A. By naming C as the auctioneer, B is delegating part of his agency duties to C.
Therefore, C would be considered a sub-agent in this scenario. The legal relationship would be such that A (the principal) is ultimately responsible for the actions and liabilities of both B (the agent) and C (the sub-agent) within the scope of the agency.
Mayank Shekhar
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