Subagencies

Question 1

Subagent

Answer 1

A person is entitled to do work for the original agent in the relationship. As a consequence, a new agency relationship is created, with the original agent becoming the principal to the subagent

Question 2

Subagent’s Liability to Principal?

Answer 2

• When the principal has authorized the agent to appoint subagents, the subagent has the same responsibilities to the principal as the original agent does.
• But if the subagent has been appointed without the principal’s authority, no agency relationship exists between the principal and the subagent.

Question 3

Imputation

Answer 3

Any breaches of duty by the subagent will be imputed to the agent.