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 (…) Manufacturers and suppliers of products often use agents acting on their behalf to promote sales, both in the manufacturer`s home country and abroad. As a general rule, a formal agreement is signed to determine the commission collected by the agent, the territory, the duration and other conditions under which the client and the agent jointly conduct business. The establishment of an agency agreement is a legal and binding document. It requires planning, evaluation and a full understanding of what this means. The best ways to avoid the potential risks of an agency agreement are: An example of the existence of an agency agreement, which was the subject of legal proceedings in 2006, arose when a tennis tournament sponsor 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. [must update] It is important to define, in agency contracts, in which situations and under what conditions the commission should be paid.
The parties are free to agree on the amount of the commission. These legal provisions must be taken into account when setting up and terminating agency contracts. An agency agreement has no form. However, a written agreement is preferable from the point of view of the evidence, but even if there is no written agreement, a judge may judge on the facts that there is an agency contract. Article 7:428, paragraph 3, of the Dutch Civil Code stipulates that each party is required to grant the other party, at its request, a written agency contract. Although the parties give a different title to the agreement (for example. B cooperation agreement), but whether they have the aforementioned characteristics of an agency agreement, this should be considered an agency agreement. In this case, the (compulsory) legislation of the Dutch law on commercial agencies applies. 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: An agency agreement, also known as an agent agreement, is a document between two parties, a client and an agent. The client is the person who is essentially “employee” or hired by the agent (although a working relationship is generally not established between the two). The agent is the person acting on behalf of the client. In an agency agreement, the agent undertakes to assume certain responsibilities and the adjudicating entity undertakes to delegate certain responsibilities to the agent in order to allow the agent to act for the client in the specific situations described in the agreement. An agency agreement is a legal document that binds two separate partners: the client and the agent. The client is the person who makes the recruitment.3 min Read An agency agreement can be used for any type of agent-principle relationship, z.B. for large companies (where an agent could act for the client or sign agreements on behalf of the client) to those for small businesses or individuals (where an agent can perform an individual task for the client).