The Agency Agreement Definition

Agency agreements are common in the business world if you want someone to act on your behalf. Much like someone with a power of attorney, an agent is in a particular type of relationship with you, the sponsor, because the agent must act in your best interest. While the client and agent often use an agency agreement to define the terms of the agency, the agreement is also based on trust, as the client will not hire an agent they do not trust. Responsibility is one of the greatest risks of an agency contract. Since the client authorizes the officer to act on his behalf, they can also expect consequences for the actions taken. If the agent participates in illegal or unethical activities while representing the client, the client could be held essentially responsible. On the occasion of a merger, Econocom, the client, and proposed by its commercial agent, SD Lease, the conclusion of a new agency contract modifying the basis and rate of its commissions – the rate of 6% of turnover is replaced by 9% of the gross margin – and includes a (…) This glossary is the list of keywords used by the Search Engine Competitions. Each keyword is automatically updated by the latest EU and national jurisdictions of the e-Competitions bulletin and competition review. The definitions are included in the DG COMP glossary on EU competition policy concepts (© European Union, 2002) and the OECD glossary of competition rules (© OECD, 1993).

A fiduciary responsibility is a legal responsibility to act in the best interests of the client. When an agency agreement is reached, the agent agrees to always act in the client`s best interests. An ethical and legally bound fiduciary relationship includes the following aspects: ratification takes place when the client accepts an act that has already taken place. This often occurs either when the agent goes beyond the scope of the agency agreement, or when the acting party is not yet officially an agent for the client. The client may approve the agency agreement at a later date, allowing the agent`s actions to be accepted and recognized and an agency agreement established. Transparency and loyalty are the characteristics of the relationship between the client and the sales agent. In any case, that is how the regulation of the agency contract provides for things, as is the case with the article. L.

134-4, paragraph 2, of the Code of Commerce means that “the relationship between the (…) The need to qualify a contract, supposedly as a commercial agency, can arise in an international context, a situation that raises not only the question of the application of the qualification criteria, but also, perhaps even more delicately, that of their identification.