Lawyers agency contract
Lawyers specialized in agency contracts
In an agency contract two parties, a principal and a commercial agent agree that the commercial agent will mediate against a certain reward in the realization of purchase contracts (or sale contracts) of the principal’s goods.
Duties of the commercial agent
The commercial agent’s obligations include the following:
– He must represent the interests of the principal with the requisite care. This means, inter alia, that the agent is obliged to provide the principal with all the necessary information and, in particular, to inform the principal immediately of the agreements which he has concluded for the principal. The commercial agent must be held accountable for the way in which he performed his task.
– He must inform the principal about the solvency of potential customers. When the commercial agent enters into contracts with customers of whom he knows that they will not be able to meet their financial obligations, he will be liable for the damage suffered by the principal.
Duties of the principal in an agency contract
The duties of the principal are as follows:
– He should behave as a good principal. He must make every effort to enable the commercial agent to perform his duties properly;
– The principal must inform the commercial agent of the acceptance or rejection of the contracts brokered by the commercial agent. This is also necessary in order to calculate the agent’s commission;
– The principal must provide the commercial agent with the required documents and information about the products that the commercial agents sells for the principal.
– He must pay commission for the contracts brokered by the commercial agent;
– After the termination of an agency contract, the commercial agent may be entitled to a customer compensation. Please note: a customer fee must be claimed from the principal within one year after the termination of the agency contract.
Lawyer specialized in agency contracts
It is important that all rights and obligations of a commercial agent and principal are accurately determined in the agency contract. Its therefore advisable to let you guide by a lawyer who can assist in drawing up an agency contract. If you want to conclude an agency contract or if you have a dispute as a result of a closed agency contract, please feel free to contact Fennek.