A person whom the agent names to act for the principal in the business of agency, under the express or implied authority to name, is called ______.

All India Bar Examination (AIBE) 17-XVII Previous Year Question Papers with Answers

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33.

A person whom the agent names to act for the principal in the business of agency, under the express or implied authority to name, is called ______.

A: Sub-agent

B: Substituted Agent

C: Agent

D: Procured Agent

The answer is: B

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Explanation

The correct option is B: Substituted Agent.

A substituted agent is a person whom the original agent names to act for the principal in the business of agency, under the express or implied authority to name. A substituted agent works directly on behalf of the principal and has a contractual relationship with the principal. A sub-agent, on the other hand, is a person employed by the original agent to perform some part of the agency's business under the control of the original agent. A sub-agent works on behalf of the original agent and has no direct contractual relationship with the principal.