Whether an agent can appoint another agent whether a power of attorney holder can appoint another power of attorney holder?
The generally accepted principle is that an agent cannot appoint another agent to do acts, which he has to perform. So, a power of attorney holder cannot appoint another power of attorney holder. This is well expressed in maxim “ delegate non protest delegare’ which means a person who is delegated with certain powers cannot delegate such powers to any third person. But, Section 190 of the Indian Contract Act has provided certain exceptions where a sub-agent may be appointed in certain circumstances; a power of attorney holder may appoint another power of attorney holder in similar circumstances.
The circumstances as per the section are as follows:
(1) The nature, custom of the trade is such that it requires the appointment of sub agents.
(2) The terms of agency or power of attorney provide for appointment of sub-agents.