Multiple choice

Which of the following statements is correct in relation to subagent?

  1. He is employed by the principal in the business of the agency.

  2. He is employed by the original agent in the business of the agency.

  3. He acts under the control of the principal.

  4. The agent is not responsible to the principal for the acts of the subagent.
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B Correct answer
Explanation

Option (1) is incorrect: He is appointed by the original agent of the business. Option (2) is correct: Subagent is an agent of original agent in the business of agency. Option (3) is incorrect: He acts under the control of original agent. Option (4) is incorrect: The agent is fully responsible to the principal for the acts of subagent.

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