If the agent, who has the right to appoint a proxy, exercises his right and appoints another person for pursuing the subject of agency, the appointed person is not the agent of the appointer; rather, he is regarded as the indirect agent of the client. Therefore,
if the object of agency is conclusion of a transaction contract and the indirect proxy concludes it, that [contract] belongs to the client, who should fulfill the commitments undertaken thereby, provided that the proxy has not overstepped the limits of his authority.
In case the proxy oversteps the limits of his authority, if the object of transaction or its substitute belongs to the client, the contract is not valid, unless the client confirms it explicitly or implicitly. But if the subject of transaction or its substitute is general, the agent or the indirect agent has to fulfill the commitments undertaken in the contract and the client is not committed to fulfill it.
Keywords: right to appoint a proxy, out of authority limits, indirect, transaction, proxy, client.
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