What is the difference between Sub-agent and Substituted agent?

It is important to understand the distinction between the two as their liability is different:

Sub-agent

1. A sub-agent is appointed by the agent and as such he is under the control of the agent.

2. A sub-agent acts under the agent.

3. There is no privity of contract between the subagent and the principal.

4. A sub-agent cannot ask for his remuneration from the principal.

5. The principal cannot hold the sub-agent liable, except in case of fraud.

6. An agent is liable for the agent acts of the sub-agent.

Substituted Agent

1. A substituted agent is only named by the agent but is under the control of the principal.

2. A substituted agent acts independently for his principal.

3. There is contractual relationship between the substituted agent and the principal.

4. A substituted agent can ask for his remuneration from the principal.

5. The principal can hold the substituted agent liable.

6. An agent is not liable for the acts of the substituted agent.