Chapter X - Agency
Section 190
Section 190: Limits on delegation
An agent normally cannot delegate acts undertaken personally, subject to the stated trade-custom and nature-of-agency exceptions.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
An agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform personally, unless by the ordinary custom of trade a sub-agent may, or, from the nature of the agency, a sub-agent must, be employed.
Rule and business relevance
A sub-agent may be permissible by ordinary trade custom or necessary from the nature of the agency. The original personal undertaking and the claimed exception both require examination.
Limits and related provisions
Do not assume delegation is always prohibited or always allowed. Distinguish a sub-agent from a person validly named as the principal’s own agent under section 194.
Hypothetical business example
Hypothetical example: A representative appointed for personal specialist judgment proposes to pass the work to someone else. The authority, trade custom and nature of the task need review first.
Practical decision flow
Identify any express or implied personal undertaking.
Establish a relevant trade custom or necessity if relying on an exception.
Classify the proposed appointee and document authority.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify any express or implied personal undertaking.
- Establish a relevant trade custom or necessity if relying on an exception.
- Classify the proposed appointee and document authority.
Avoid
- Do not assume delegation is always prohibited or always allowed. Distinguish a sub-agent from a person validly named as the principal’s own agent under section 194.
Glossary
- Delegation
- Entrusting another with acts the agent undertook to perform.
- Trade custom
- An ordinary custom permitting a sub-agent in the relevant trade.
Frequently asked questions
Is delegation always unlawful?
No. The provision states exceptions based on trade custom and the nature of the agency.
Does a personal undertaking matter?
Yes. It is central to the restriction.
Is every additional professional a sub-agent?
No. Section 194 distinguishes a person appointed to act directly for the principal.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026