Appointment of a substitute agent

Art. 1892. The agent may appoint a substitute if the principal has not prohibited him from doing so; but he shall be responsible for the acts of the substitute: (1) When he was not given the power to appoint one (2) When he was given such power, but without designating the person, and the person appointed was notoriously incompetent or insolvent. All acts of the substitute appointed against the prohibition of the principal shall be void.

Art. 1893. In the cases mentioned in Nos.1 and 2 of the preceding article, the principal may furthermore bring an action against the substitute with respect to the obligations which the latter has contracted under the substitution.

The general rule is that the agent has power to appoint a substitute. The exception is when the principal prohibits him from doing so. The rule is similar to that of lease and sub-lease.

The principal may allow the agent to appoint any substitute or a designated person. In case of the latter, the agent shall not be liable even if such designated person turns out to be  notoriously incompetent or insolvent. All acts of such designated person shall find the principal.

The principal has a cause of action against the substitute.

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