Agency Agreement Means What

Disputes concerning the application of the public policy status of the commercial agent are still ongoing, in particular over what is meant by “negotiation”. The judgment under comment illustrates this again. The case concerned an intermediary (…) A fiduciary responsibility is a legal responsibility to act in the best interest of the client. When an agency contract is drawn up, the agent agrees to always act in the best interests of the client. An ethical and legal trust relationship has the following elements: transparency and loyalty are the characteristics of the relationship between the client and the commercial agent. At least that is how the regulation of the agency contract, such as Article L, is understood. 134-4, paragraph 2, of the Commercial Code provides that “the relationship between (…) A reseller`s agreement should allow a reseller to sell, market, market or sell a product on behalf of the wholesaler. It should not allow a reseller to bind a wholesaler to a contract with a third party. A commercial agent contract is a contract of common interest subject to a bilateral duty of loyalty (Com.C., art. L. 134-4). Failure by the contracting entity to comply with that obligation enables it to intervene in the breach caused by the supplier and, consequently, the (…) An example of an agency contract is in an employment environment where a superior authorizes an employee to carry out a particular project. It is possible to conclude an agreement describing the different tasks of the agent.

The legal relationship between the intermediary and the payer depends on how the Agency was established. An agency can be created in different ways: an agency contract is a document that binds two separate partners: the client and the agent. The client is the person who is in charge of hiring. The agent is the person who performs the tasks on behalf of the client. The agreement often creates a legal relationship and a type of proxy status between two parties. The system of commercial agents provided for in Articles L. 134 to 1 et seq. of the EC Treaty implements the provisions of Directive 86/653/EEC of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial agents. Article 17(3) of Directive (…) Agency contracts are often used in situations where one party must act on behalf of the other.

This may include situations such as: this list is not exhaustive. However, if the agent is incurred by one or more of the above risks or costs, the agreement between the agent and the client shall not qualify as a commercial agent contract. The question of risk must be assessed on a case-by-case basis and on the basis of the economic reality of the situation and not on the legal form. For practical reasons, the risk analysis can begin with the assessment of the risks specific to the contract. If the agent can take risks specific to the contract, it is sufficient to conclude that the agent is an independent distributor. On the contrary, if the agent does not take contract-specific risks, the analysis must continue by assessing the risks associated with market-specific investments. . . .

Share this :