An agency agreement should provide information such as: When an agency is created by agreement, it is the agreement that establishes the relationship between the client and the agent. The agreement generally specifies what the officer is authorized to do, where the officer can operate and when the officer can act. Despite a relatively classic legal situation in the field of the commercial agency, a decision of the Court of Appeal of Lyon of 6 June 2019 is worth mentioning. The question is how to calculate the amount of compensation instead of a termination (Article L. 134-11 (…) Hire someone to complete the little project you`ve had to do for ages? If they work as independent contractors and not as employees, be sure to protect your business with an independent contract. Agency agreements are often used in situations where one party must act on behalf of the other. Situations such as: An example of the existence of an agency agreement, which was the subject of legal proceedings in 2006, was born when a sponsor of a tennis tournament sued Venus and Serena Williams for not participating. The sponsor claimed that his father, Richard Williams, had committed to participate in the tournament. The Williams sisters argued that their father did not have the authority to match them to such an agreement. If his father forced the sisters to play, the court had to decide whether there was a valid agency agreement between the Williams sisters and their father. If not, they were probably not bound by its agreement in accordance with Agency law.
This article contains only general comments. You should not rely on the comment as legal advice. Specific legal advice should be obtained to determine how the law is applicable to your particular circumstances. In a merchant agreement, it is often stated the nature of the relationship between the wholesaler and the dealer, as well as what is not the relationship. The agreement may, for example, indicate that the relationship is that of the wholesaler and the dealer, not that of the client and the agent. If the relationship between a dealer and a wholesaler does reflect that of the representative and the client, a jurisdiction may find that a contract entered into by the dealer is binding on the wholesaler, regardless of the terms of a reseller`s agreement. Despite the convenience and need for agency agreements, there may be some drawbacks. The main risk in the legal relationship between the client and the agent is that the adjudicating entity may be held liable for a fault committed by the agent. When an agent makes an error or engages in illegal activity while representing the client, the client can be considered technically as the act, since the agent essentially acted as the „main“ obligatory.