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Agency Agreements

agency agreements

In  Agency Agreements an agency relationship is where one party (the agent) has the authority to enter contracts with a third party (the customer) on behalf of the second party (the principal).

An Agency Agreement occurs when the agent transacts on behalf of the principal, and the actual sales contract is between the principal and the customer.  A supplier usually imposes few restrictions on agents and these normally relate to the agent’s powers to bind the supplier.

The agent is accountable for everything they do.  If they incur debt, they are the debts of the principal.  If they break the law, the vicarious responsibility is that of the principal.

Agency Agreements often concern agents or principals overseas.  Such Agency Agreements or contracts may include terms from Incoterms.  ‘Incoterms’ refers to the collection of essential international commercial and trade terms.  The terms were devised in recognition of non-uniform standard trade usages between various States.

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Exclusive agency agreement

An Exclusive Agency Agreement is an restrictive agreement (involving a good, service, market, or territory) that binds a principal and an agent in an association under which neither can make any similar deals with the other’s competitors (for a specified period).

agency agreement appointing an agent

An Agency Agreement when an agent is appointed to arrange the manufacture of goods overseas. An Agency Agreement is appointed to source an overseas manufacturer.

sole agency agreement

Agency Agreement for a company appointing the agent as its sole or exclusive agent for the purchase of all goods.

A sole agency agreement is similar to an exclusive agency agreement. You give rights to one agent to sell the property but you may find a buyer yourself.  .

agreement to appoint an agent

 

An Agency Agreement that appoints a purchasing agent for the purchase of the goods

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