Written by attorneys · grounded in primary & secondary sources — see below
A person appointed by an agent empowered to do so to perform functions undertaken by the agent for the principal, but for whose conduct the agent agrees with the principal to be primarily responsible.
Sources & Authorities
How it applies
Common Examples
2
Insurance Agent Delegates Solicitation
Sapphire Technologies appointed Steven Silva as its general agent to solicit commercial policies and bind coverage under a written agreement that permitted him to hire assistants. Steven then hired Serena Soto to visit businesses, explain products, and complete applications. Steven notified Sapphire in writing that he would be primarily responsible for any misstatements by Serena. When Serena misrepresented a risk and caused a loss, Sapphire held Steven primarily responsible for her conduct.
Enrollment Services Retains Recruiter
Northbridge College hired GlobalPath Enrollment Services to recruit international students under a contract that authorized GlobalPath to hire local recruiters and required GlobalPath to remain primarily responsible for their conduct. GlobalPath then retained Sierra Santos to meet with students, explain programs, and help with applications using Northbridge materials. Sierra conveyed scholarship offers that later led to claims against the college. The college treated Sierra as GlobalPath's subagent with GlobalPath bearing primary responsibility.
Put it into practice
Test Yourself
10
Practice Questions5
· 1 primary source
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
Casebooks
Course Outlines
Study Supplements
Dictionaries
Ashcroft v. Iqbal556 U.S. 662 (2009)
Common questions
Frequently Asked
5
What are the three key elements required to establish a subagent relationship?+
An existing agency between the principal and the agent must exist. The agent must be empowered to appoint another person to perform the agent's tasks for the principal. The agent must agree with the principal to be primarily responsible for that person's conduct.
Supporting sources
How does a subagent differ from a co-agent?+
A co-agent is another agent appointed directly by the principal to act in parallel with the first agent. A subagent is appointed by the agent rather than the principal and performs the appointing agent's functions for the principal while the appointing agent remains primarily responsible to the principal.
Supporting sources
Does an independent contractor status prevent a person from being a subagent?+
No. Agency law focuses on whether an authorized agent appointed the person to perform the agent's functions for the principal and agreed to be primarily responsible for that person's conduct. Independent contractor status may affect other legal issues but does not preclude subagency.
Supporting sources
When can a principal be bound by the acts of a subagent?+
A principal can be bound by a subagent's acts within the scope of the functions the subagent was appointed to perform for the principal. The appointing agent remains primarily responsible to the principal for the subagent's conduct.
Supporting sources
What happens to a subagent's authority when the appointing agent's authority terminates?+
The principles applicable to the termination of an agent's authority also apply to the termination of a subagent's authority.
Supporting sources
Business Associations Agency and PartnershipAgency relationships · TypesUBEIntermediate