ICA Section 194: Relation between principal and person duly appointed by agent to act in business of agency
Indian Contract Act, 1872 · Chapter 10: Agency
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194. Relation between principal and person duly appointed by agent to act in business of agency.—Where 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 solicitor for A.
Official reference: India Code, Legislative Department — checked: 29 September 2026.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 182. "Agent" and "Principal" defined
- 183. Who may employ agent
- 184. Who may be an agent
- 185. Consideration not necessary
- 186. Agent's authority may be expressed or implied
- 187. Definitions of express and implied authority
- 188. Extent of agent's authority
- 189. Agent's authority in an emergency
- 190. When agent cannot delegate
- 191. "Sub-agent" defined
- 192. Representation of principal by sub-agent properly appointed
- 193. Agent's responsibility for sub-agent appointed without authority
- 195. Agent's duty in naming such person
- 196. Right of person as to acts done for him without his authority: effect of ratification
- 197. Ratification may be expressed or implied
- 198. Knowledge requisite for valid ratification
- 199. Effect of ratifying unauthorized act forming part of transaction
- 200. Ratification of unauthorized act cannot injure third person
- 201. Termination of agency
- 202. Termination of agency, where agent has an interest in subject-matter
- 203. When principal may revoke agent's authority
- 204. Revocation where authority has been partly exercised
- 205. Compensation for revocation by principal, or renunciation by agent
- 206. Notice of revocation or renunciation
- 207. Revocation and renunciation may be expressed or implied
- 208. When termination of agent's authority takes effect as to agent, and as to third persons
- 209. Agent's duty on termination of agency by principal's death or insanity
- 210. Termination of sub-agent's authority
- 211. Agent's duty in conducting principal's business
- 212. Skill and diligence required from agent
- 213. Agent's accounts
- 214. Agent's duty to communicate with principal
- 215. Right of principal when agent deals, on his own account, in business of agency without principal's consent
- 216. Principal's right to benefit gained by agent dealing on his own account in business of agency
- 217. Agent's right of retainer out of sums received on principal's account
- 218. Agent's duty to pay sums received for principal
- 219. When agent's remuneration becomes due
- 220. Agent not entitled to remuneration for business misconducted
- 221. Agent's lien on principal's property
- 222. Agent to be indemnified against consequences of lawful acts
- 223. Agent to be indemnified against consequences of acts done in good faith
- 224. Non-liability of employer of agent to do a criminal act
- 225. Compensation to agent for for injury caused by principal's neglect
- 226. Enforcement and consequences of agent's contracts
- 227. Principal how far bound, when agent exceeds authority
- 228. Principal not bound when excess of agent's authority is not separable
- 229. Consequences of notice given to agent
- 230. Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
- 231. Rights of parties to a contract made by agent not disclosed
- 232. Performance of contract with agent supposed to be principal
- 233. Right of person dealing with agent personally liable
- 234. Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
- 235. Liability of pretended agent
- 236. Person falsely contracting as agent, not entitled to performance
- 237. Liability of principal inducing belief that agent's unauthorised acts were authorised
- 238. Effect, on agreement, of misrepresentation or fraud by agent