BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The principal only
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The original agent in the business of agency only
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Both the principal and original agent only
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Neither the Principal nor the original agent
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Detailed explanation-1: -191. ‘Sub-agent’ defined.-A ‘sub-agent’ is a person employed by, and acting under the control of, the original agent in the business of the agency.-A ‘sub-agent’ is a person employed by, and acting under the control of, the original agent in the business of the agency."
Detailed explanation-2: -: a subordinate agent : an agent (such as a real estate broker) who is authorized by another agent to act in that person’s place. In a subagency, the selling broker is a subagent of the seller because the selling broker derives his/her authority from the listing broker.
Detailed explanation-3: –The agent is responsible to the principal for the acts of the sub-agent. Sub-agent’s responsibility.-The sub-agent is responsible for his acts to the agent, but not to the principal, except in cases of fraud or wilful wrong.
Detailed explanation-4: -As per section 191, a sub-agent is a person employed by and acting under the control of the original agent. Thus, a sub-agent is the agent of the original or the primary agent. The original agent appoints a sub-agent and delegates the work of the principal to him.
Detailed explanation-5: -A person appointed by an agent to perform some duty, or the whole of the business relating to his agency.