½Û×ÓÊÓƵ

This Practice Note discusses the personal nature of an agency relationship, and the circumstances in which the agent may delegate its authority to a third party or sub-agent.

The general rule, arising from the personal nature of an agency, is that an agent may not entrust to another the exercise of a power or duty. However, delegation is allowed with the principal's consent, or where empowered by statute. It may be implied, among other cases:

1. •

   where no personal skill or confidence is required of the agent, and its duties can be sufficiently discharged by any person

2. •

   under custom or trade usage

3. •

   where the principal is, or can be presumed to be, aware that the agent intends to delegate, and does not object, or

4. •

   where the nature of the agency requires partial or total delegation (eg involves acts the agent cannot physically perform itself)

There is generally no privity of contract between a principal and a sub-agent. The sub-agent is liable only to the agent, who:

1. •

   is liable for the sub-agent's acts and defaults

2. •

   must account