Which is a correct distinction between a sub-agent and a substituted agent?
AA sub-agent has privity with the principal; a substituted agent does not
BThere is privity of contract between the principal and a substituted agent, but not with a sub-agent
CA substituted agent answers only to the agent
DBoth work under the agent's control
Answer & Solution
Correct answer: B. There is privity of contract between the principal and a substituted agent, but not with a sub-agent
A substituted agent has privity with and is responsible to the principal, whereas a sub-agent works under the agent's control with no privity to the principal.
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