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Section 193: Agent's responsibility for sub-agent appointed without authority

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1872
Section 192 All 266 Sections of Indian Contract Act Section 194

Legal Commentary & Landmark Judgments: Section 193

Section 193 governs the unauthorized appointment of a sub-agent, establishing that the principal is neither represented by nor responsible for the acts of an unauthorized sub-agent, nor is the sub-agent responsible to the principal; instead, the appointing agent stands in the relation of a principal to the sub-agent and is personally liable to both the principal and third persons.

  • Appointment without Authority: The agent delegates agency business to a sub-agent in direct violation of Section 190, without express permission, trade custom, or necessity.
  • Complete Insulation of Principal: The principal is not represented by the unauthorized sub-agent and incurs zero liability to third parties for contracts, torts, or commitments entered into by the unauthorized sub-agent.
  • Intermediate Agent's Dual Personal Liability: The appointing agent stands as a principal toward the unauthorized sub-agent, and is solely, personally, and strictly responsible for all the sub-agent's acts to both the true principal and all third parties.
Key Landmark Precedents:
  • De Bussche v. Alt (1878) 8 Ch D 286: The Court affirmed that unauthorized delegation creates no legal relationship between the principal and the unauthorized delegate; the delegating agent assumes sole master responsibility for all consequences.
  • Firm of Kanhaya Lal v. Firm of Devi Dayal AIR 1927 Lah 484: The High Court held that where an agent appoints a sub-agent without authority, the principal is not bound by contracts made by that sub-agent, and third parties have recourse exclusively against the intermediate agent under Section 193.
Courtroom Practice & Strategic Litigation Guidance:

When defending a corporate principal against a third-party claim arising from contracts signed by an unauthorized sub-agent, invoke Section 193. Prove that the delegation was prohibited and outside ordinary trade custom. The principal is completely immune, and the third party's sole remedy lies in a damages suit against the intermediate agent.

Section 192 All 266 Sections of Indian Contract Act Section 194