Also known as: associate agents · subagent · sub-agent
Written by attorneys · grounded in primary & secondary sources — see below
An agent appointed by another agent to perform functions the appointing agent undertook for the principal, with the appointing agent remaining primarily responsible to the principal for the appointee's conduct.
Orchid University retained GlobalEd to recruit foreign students and authorized GlobalEd to appoint local counselors while remaining primarily responsible for their conduct. GlobalEd then hired Ms. Rao to meet families and issue recommendations using Orchid's materials. When a dispute arose over Ms. Rao's statements, Orchid looked to GlobalEd for accountability because the arrangement created subagency.
BlueWave Shipping appointed Harbor Services as its exclusive port agent and authorized it to hire local firms while remaining primarily responsible for their conduct. Harbor Services then retained Local Harbor Ltd. to arrange pilots and paperwork in BlueWave's name. When paperwork errors occurred, BlueWave held Harbor Services accountable under the subagency structure.
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A subagent receives authority through an intermediate agent that remains primarily responsible to the principal. A coagent receives authority directly from the principal and stands at the same level in the hierarchy.
Supporting sources
No. The substance of the relationship controls. When an authorized agent appoints someone to perform the agent's functions for the principal and agrees to remain primarily responsible, subagency exists regardless of independent-contractor labels in separate contracts.
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Authority to appoint a subagent is inferred when the principal empowers an agent to conduct a transaction for which the agent will be responsible to the principal, unless the parties agree otherwise.
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Yes. When the elements of subagency are satisfied, the principal is bound by the subagent's authorized acts within the scope of the delegated functions, just as with a direct agent.
Supporting sources
…v. One Black Horse (D. C.) 129 F. 167. Again by section 2140 of the Revised Statutes (Comp. St. § 4141) any Indian agent, subagent or commander of a military post in the Indian country, having reason to suspect or being informed that any white person or Indian is about to introduce, or has introduced, any spirituous…