Malaysia legislation
Section 146
Section 146
Agent’s responsibility for sub-agent
Where an agent, without having authority to do so, has appointed a person to act as a sub-agent, the agent stands towards that person in the relation of a principal to an agent, and is responsible for his acts both to the principal and to third persons; the principal is not represented by or responsible for the acts of the person so employed, nor is that person responsible to the principal.
Relation between principal and person duly appointed by agent to act in business of agency 147.
Where an agent, holding an express or implied authority to name another person to act for the principal in the business of the agency, has named another person accordingly, that person is not a sub-agent, but an agent of the principal for such part of the business of the agency as is entrusted to him.
(a)
A directs B, his advocate, to sell his estate by auction, and to employ an auctioneer for the purpose. B names C, an auctioneer, to conduct the sale. C is not a sub-agent, but is A’s agent for the conduct of the sale.
(b)
A authorizes B, a merchant in Taiping, to recover the moneys due to A from C & Co. B instructs D, and advocate, to take legal proceedings against C
& Co. for the recovery of the money. D is not a sub-agent, but is advocate for
A.
Agent’s duty in naming such person