An agent can be held personally liable in certain situations, such as when the agent exceeds their authority or does not disclose the principal. An agency relationship can be terminated either by operation of law, such as the death of a party, or by the acts of the parties, like one party giving notice to the other. A substituted agent works directly for the principal, unlike a sub-agent who works under the control of the original agent, so the principal can hold a substituted agent liable but not a sub-agent.

1. PERSONAL LIABILITY OF AGENT
An agent acts on behalf of his principal but in following cases he
is personally liable if there is an agreement to that effect.
1. Where the contract is made by an agent for a merchant living
abroad.
2. Where agent doesnot disclose the name of his principal.
3. Where principal though disclosed, but cannot be sued.
4. Where an agent exceeds his authority.
5. Where an agent agrees to be bound personally.
In all the above cases, the agent is accountable and can be
sued.

2. TERMINATION OF AGENCY
Termination of agency may take place in two ways
*Operation Of Law
*Act Of Parties

3. TERMINATION OF AGENCY BY THE OPERATION OF LAW:
Following are the situations where the agency is terminated by
the operation of law.
- Expiry of Time: At times, contract of agency may be formed
for a particular period. In such a case, after expiry of that
agreed period, termination of agency takes place.
-Fulfillment of object: At times the contract of agency may be
found for a particular objective. In such a case termination of
agency takes place after the fulfillment of the objective.
-Death or lunacy of either party: Whenever principal or agent
come across death or lunacy, agency contract gets terminated.
-Insolvency of Principal: Principal should have capacity to
contract. When principal becomes insolvent, He foregoes
capacity to contract and termination of agency takes place.

4. -Destruction of subject matter: When subject matter of
contract gets destructed, agency contract comes to an end.
-Principal – Alien Enemy: When principal is alien and war
breaks out between the countries, then principal becomes alien
enemy and agency contract gets terminated.
-Liquidation of company: Company as being a legal entity, may
act either as principal or agent. Whatever the status may be, if
company enters into liquidation, termination of agency takes
place.

5. TERMINATION OF AGENCY BY THE ACT OF PARTIES:
The following are the situations where the agency is
terminated by the act of parties.
-Termination of agency by the Principal: Principal can
terminate the contract of agency by giving notice to agent. By
doing so if agent comes across any suffering. Principal has to
compensate the agent.
-Termination of agency by the Agent: Agent also can terminate
the agency contract by giving notice to principal but by doing so
if principal comes across any suffering, agent has to
compensate.
-Termination of agency by both the parties to the contract: By
means of mutual understanding between principal and agent,
the contract of agency may come to an end.

6. SUBSTITUTED AGENT
A substituted agent is a person who is only named by the agent
but is under the control of the principal. He acts independently
for his principal. There is contractual relationship between the
substituted agent and the principal. The principal can hold the
substituted agent liable. An agent is however not liable for the
acts of the substituted agent.
While naming substituted agent for the principal, an agent is
bound to exercise some amount of discretion as a man of
ordinary prudence would exercise in his own case.If the agent
does so, he is not responsible to the principal for the acts or
negligence of the substituted agent.
Example – Mr. Khan appoints Mr. Jhanzeb as his agent for
selling his car in auction and requests Mr. Jhanzeb to name
some reliable solicitor for that purpose. Mr. Jhanzeb named
Miss Saima as a solicitor. There is a direct privity of contract
between Mr. Khan and Miss Saima. And so in this scenario Miss
Saima is the substituted agent.

7. DIFFERENCE BETWEEN A SUB-AGENT &
SUBSTITUTE AGENT.
SUB-AGENT SUBSTITUTED AGENT
Appointment
Sub agent is appointed by Agent. Named by the Agent and appointed
by the Principal.
PRIVITY OF CONTRACT
No privity of contract b/w sub-agent
& principal.
There is a privity of contract b/w
substituted agent & principal.
LIABILITY
An agent is liable for the acts of sub-agents.
An agent is not liable for the acts of
substituted agent.
DIRECTION & CONTROL
Sub-agent works under the control &
direction of an original agent.
Substituted agent works under the
control of principal.