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.

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:

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.

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