Where a sub-agent is appointed WITHOUT authority (Section 193):
AThe agent is responsible for the sub-agent's acts to the principal and to third persons, and the principal is not bound
BThe sub-agent is liable directly to the principal
CThe appointment is automatically valid
DThe principal is bound by the sub-agent's acts
Answer & Solution
Correct answer: A. The agent is responsible for the sub-agent's acts to the principal and to third persons, and the principal is not bound
Section 193 makes the agent responsible to the principal and third persons for an unauthorised sub-agent's acts; the principal is not bound and the sub-agent answers only to the agent.
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