This agency model allows the structure of commissions preferred by the client. In addition, the responsibilities of the agent and the client are presented in a clear and detailed manner. This agreement grants the agent a defined territory in which it is possible to sell during the period of the agency contract. The territory can range from a city, a county, a country, a continent to the world of any size. The agent may also be granted more than one territory. It is the owner who decides the territory granted. Some contractors grant territory and then offer more territories as soon as an agent has proven that he can effectively promote and sell products or services. Immediate termination of the agency contract (i.e. without notice) is permitted if a party does not comply with its contractual obligations or if exceptional circumstances occur. Many agency contracts are usually indefinitely or are a fixed-term contract that has been sued. Under the Commercial Agents Regulations, minimum termination periods apply when a contract is entered into for an indeterminate period or exceeds its fixed deadline and is therefore considered unlimited. Under these conditions, any party may terminate the 5 with denunciation. Compensation may also be sought if the client terminates the agent`s death contract.
Agency agreements may end on a fixed date (for example. B within 12 months) or continue indefinitely. If the agreement is maintained after the end of the validity period, it is presumed that it has turned into an indeterminate agreement. It is important to always be clear about the regime that is being applied. Confusion can arise because the parties have used a standard form agreement that does not reflect the economic and legal reality of the supply chain. When an agent makes an error or engages in illegal activity while representing the client, the client can technically be considered the act, since the agent essentially acted as an adjudicating entity. A contractor is also bound by contracts that an agent enters into on his behalf and can be held liable if he violates a person or damages property. The agency contract must therefore be written with clear conditions. The agreement should explicitly limit the client`s liability if the agent does something that has not been authorized. Another question is whether the agency contract should be exclusively (order giver) or not exclusively for the territory concerned.
This is also a commercial decision for the client. If the client has a product or service that has a small margin and requires a large sales volume to get a reasonable profit, then the more agents, the better. However, the counter-argument is that when an agent has an exclusive agreement, he or she is more willing to promote and sell the products. Our agency agreement also implies the obligation for the agent to fully comply with the 2010 Corruption Act. Yes, you are fully responsible for all acts that an agent takes on your behalf if he acts within the authority entrusted to him. This is another reason why it is so important to get specialized legal advice before entering into an agency agreement.