27 Nov A Written Agency Agreement Is
An agency agreement is reached when a person, known as an “agent,” is authorized by another person, the so-called client, to act on behalf of the client. A principle that assigns an agency to an agent establishes a legal relationship with the agent. Agency agreements are important to businesses because you can meet with them if you ask a seller, accountant, lawyer or other third party to make transactions on your behalf. If the parties have not agreed on notice in the agency contract, the specific termination provisions covered by Article 7:437 of the Dutch Civil Code apply, i.e. at least 4 months, plus one month after 3 years or more and 2 months after 6 years or more. Recruiting an agent or agency to represent your business is a simple and inexpensive way to grow your business without hiring additional staff. In addition to the obvious expenses for wages, bonuses and other compensation, employees can cost a business more subtly and require further investments in benefits, payroll taxes, insurance premiums, offices and equipment. These additional costs are not necessary for officers; Companies can use these resources for specific tasks based on business needs and can avoid legal minefields for recruitment and dismissal of staff depending on the low market tide. Organizations can select experts who perform work when needed, and they can avoid the costs and costs of providing additional training or training to current staff. If you (as a sales agent or principal) would like to help you establish and negotiate an applicable and legally binding agency contract, or in the event of a dispute or termination of an agency contract, please contact us. If you.
B Asking an agent to sign a contract on behalf of your company and you have not read the contract first, you remain responsible for all contractual terms. The client approves the officer`s actions and therefore bears the last responsibility. The agency agreement between a client and the agent must always be written in writing, with clear commercial terms, with explicit language limiting the responsibility of the client, when the representative does something that has not been authorized. This protects you personally and professionally. An agency agreement is an agreement in which the client (the manufacturer/customer) orders the sales agent and obliges the client to provide intermediary services for a specified or indeterminate period and for a fee when the contract is concluded and to enter into these services on behalf of and on behalf of the client, without being subject to the contracting authority (Article 7:428 of the Dutch Civil Code). The agent is therefore, on behalf of the client, responsible for drafting the contract and receives a commission to do so.