Legal Definitions - subagent

A subagent is an individual or entity appointed by an agent to perform certain tasks or duties on behalf of the agent's principal. In essence, the subagent acts as an agent for the original agent, but ultimately serves the interests of the original principal. This arrangement typically occurs when the original agent needs assistance or specialized expertise to fulfill their obligations to the principal and is authorized to delegate such tasks. The subagent owes duties of loyalty and care to both the appointing agent and the original principal.

Here are some examples to illustrate the concept of a subagent:

• Real Estate Transaction: Imagine Sarah hires a real estate agent, Mark, to sell her house. Mark is Sarah's primary agent. Due to a scheduling conflict, Mark asks a colleague, Lisa, who also works at his brokerage, to host an open house and show the property to potential buyers while he is out of town. In this scenario, Lisa is acting as a subagent. She was appointed by Mark (the agent) to perform duties directly for Sarah (the principal), such as showcasing the property and interacting with potential buyers. Lisa owes duties of care and loyalty to both Mark and Sarah to act in Sarah's best interest during the open house and showings.

• International Travel Planning: A client, David, hires a travel agency, "Global Journeys," to plan and book a complex safari trip to Kenya. Global Journeys is David's agent, responsible for arranging his entire itinerary. To handle the specific in-country logistics, such as ground transportation, local guides, and specific lodge bookings within Kenya, Global Journeys partners with a local Kenyan tour operator, "Safari Experts." Here, "Safari Experts" acts as a subagent. They were appointed by Global Journeys to perform services directly related to David's trip in Kenya, fulfilling part of Global Journeys' obligations to David. Safari Experts is working on behalf of David, even though they were hired by Global Journeys.

• Logistics and Shipping: A manufacturing company, "TechCorp," hires a freight forwarding company, "Rapid Cargo," to manage the international shipment of its electronics from China to the United States. Rapid Cargo is TechCorp's agent for the entire shipping process. To handle the specific customs clearance procedures and documentation required at the U.S. port of entry, Rapid Cargo contracts with a local customs broker, "ClearPath Customs." In this situation, "ClearPath Customs" is a subagent. They were appointed by Rapid Cargo (the agent) to manage a crucial part of the shipment (customs clearance) directly for TechCorp's goods (the principal). ClearPath Customs performs a service directly benefiting TechCorp, under the authority delegated by Rapid Cargo.