Q.7 Describe the Delegation of authority of an agent.
Ans: DELEGATION OF AUTHORITY OF AGENT
CAN AN AGENT DELEGATE HIS AUTHORITY (SECTION 190]
The Latin maxim delegates non protest delegare’, which means that a delegate cannot further delegate, gives the answer to this question. In other words, a person to whom power has been delegated cannot delegate them to another.
In case of an agency, the agent cannot further delegate his authority because he himself is a person to whom authority has been delegated by the principal. In the root like to repose in the sub-agent who is literally a stranger to him. Section 190 of the Act embodies this principal, which provides that an agent cannot lawfully employ another to person acts, which he has expressly or impliedly undertaken to perform personally.
EXCEPTION TO THE GENERAL RULE [SECTION 190]
There are some exceptions to the general rule that a delegate cannot further delegate, as follows.
(a) Where the custom of the trade permits delegation, e.g. Article clerks employed by a Chartered Accountant.
(b) Where the nature of the agency requires delegation.
(c) Where the principal permits delegation.
(d) Where the principal known that the agent intends to delegate but does not object to it.
(e) Where an emergency requires delegation.
(f) Where the duties of the agent do not require any personalized skill, confidence or discretion and the work involved is of routine nature.