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Introducing the βIn Favour Ofβ filter in Case Laws.
Try it now in Case Laws β


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<h1>Agents Not Liable for Sub-Agent's Actions if Due Diligence Shown Under Section 195, Indian Contract Act, 1872.</h1> Under Section 195 of the Indian Contract Act, 1872, an agent must exercise the discretion of an ordinarily prudent person when selecting a sub-agent for their principal. If the agent meets this standard, they are not liable for the sub-agent's actions or negligence. For example, if an agent hires a reputable ship surveyor who negligently selects an unseaworthy ship, the agent is not responsible for the loss. Similarly, if an agent employs a credible auctioneer who becomes insolvent without remitting sale proceeds, the agent is not liable for the financial loss to the principal.