Indian Contract Act, 1872
194. Relation between principal and
person duly appointed by agent to act in business of agency
When an agent, holding an express or implied authority to name
another person to act for the principal in the business of the agency, has
named another person accordingly, such person is not a sub-agent, but an agent
of the principal for such part of the business of the agency as is entrusted to
him.
Illustrations
(a) 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.
(b) A authorizes B, a merchant in Calcutta, to recover the
moneys due to A from C & Co. B instructs D, a solicitor, to take legal
proceedings against C & Co. For the recovery of the money. D is not a
sub-agent, but is a solicitor for A.