4.7 Distinction between Agent, Sub-Agent and Substituted Agent

PointSub-agentSubstituted agentAppointed byThe agent (a delegate of the delegate)The agent names a person to act as the principal's own agent, on the principal's behalf — with the principal's concurrenceAuthority's sourceDerivative from the agent's authorityFresh from the principal (the nomination relation)Responsibility to principalOnly through the agent; the agent answers for the sub-agent's fraud and negligenceDirectly to the principalPrincipal's direct bondNone (absent ratification)Yes — an agency in its own rightThe agent himself: appointed by the principal, binds the principal within authority, owes the fiduciary duties of 4.6. The distinction's exam-turn: the responsible- agent test — when an agent, exercising his authority, names another person to act for the principal and the principal accepts, the named person is a substituted agent (not a sub-agent); the appointing agent's duty is only to choose with ordinary care.