Both a sub-agent and a substituted agent are appointed by the agent, however, there are some points of distinction between the two. Elaborate…

Under the Indian Contract Act,1872, both a sub-agent and a substituted agent are appointed by the agent. But, however, the following are the points of distinction between the two. S.No. Sub Agent Substituted Agent 1. A sub-agent does his work under the control and directions of agent. A substituted agent works under the instructions of the principal. 2. The agent not only appoints a sub-agent but also delegates to him a part of his own duties. The agent does not delegate any part of his task to a substituted agent. 3. There is no privity of contract between the principal and the sub-agent. Privity of contract is established between a principal and a substituted agent. 4. The sub-agent is responsible to the agent alone and is not generally responsible to the principal. A substituted agent is responsible to the principal and not to the original agent who appointed him 5. The agent is responsible to the principal for the acts of the sub-agent. The agent is not responsible to the principal for the acts of the substituted agent. 6. The sub-agent has no right of action against the principal for remuneration due to him. The substituted agent can sue the principal for remuneration due to him. 7. Sub-agents may be improperly appointed. Substituted agents can never be improperly appointed. 8. The agent remains liable for the acts of the sub-agent as long as the sub-agency continues. The agent's duty ends once he has named the substituted agent.