The words "Sub Agent," "Principal," and "Substitute Agent" relate to specific duties and responsibilities that individuals or entities assume when entering into business or contractual transactions. Let's take a closer look at each of these ideas:

1.Principal:

A central figure in an agency partnership is the principle. It refers to a person or entity who gives another person (the agent) authorization to act on their behalf in certain economic operations. The agent represents and makes choices for the principle, and any actions made by the agent within the boundaries of their authority bind the principal legally. The principal is liable for their agent's activities as long as they fall within the scope of the agency.

In the real estate context, for example, a property owner (the principal) may hire a real estate agent (the agent) to sell their property. The agent negotiates with possible buyers, handles paperwork, and finalizes the sale on behalf of the owner.

2.Agent:

An agent is a person or organisation authorized by the principal to act on their behalf and carry out the duties and responsibilities defined in an agency agreement. The agent has a fiduciary duty to the principle, which implies that they must operate in the best interests of the principal and avoid any conflicts of interest.

Depending on the conditions of the agency agreement, the agent's authority may be broad or limited. The agent may also appoint sub-agents on behalf of the principal, but this must be properly stated and within the extent of their authority.

3.Agent Delegate:

A sub-agent is an individual or organisation appointed by the agent to help in carrying out the principal's agency duties and responsibilities. In this case, the agent acts as a go-between for the principal and the sub-agent. The agent is nonetheless liable for the sub-agent's acts while they are acting within the limits of their power.

Depending on the circumstances, the appointment of a substitute agent can be temporary or permanent. The substitute agent must be approved by the principal or the original agent to act on the principal's behalf during the agent's absence or inability to perform.

To summarize, agency relationships entail a principle who delegated authority to an agent to act on their behalf. The agent may select a sub-agent to assist them in carrying out their obligations, and in some cases, a substitute agent may be appointed to temporarily or permanently take over the agent's job. All parties in an agency relationship must act in good faith, with the best interests of the principal in mind at all times.