The following Commercial guidance note provides comprehensive and up to date legal information covering:
Agency is a relationship under which a principal appoints an agent to act under their direction and on their behalf for specified purposes. In business, such purposes are commonly the introduction or conclusion of contracts between the principal and customers or other third parties. The term ‘agent’ is sometimes used loosely in business and may refer to those, eg distributors, whose activities are similar to those of agents but who are not agents in law.
In commercial matters, the parties will normally have a written agreement that sets out:
the scope of the agent's authority
the parties' rights and duties
under what circumstances and with what consequences the agency can be terminated
general commercial provisions, and
where relevant, provisions required by or relevant to the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Commercial Agents Regulations); see Practice Note: Commercial agency
For a Precedent that can be adapted as necessary, see Precedent: Sales and marketing agency agreement for goods—non-exclusive—pro-principal or Sales and marketing agency agreement for goods—exclusive—pro-principal.
An agent's authority may be general or specific (see Practice Note: Scope and authority of the agent).
An agent may be:
a del credere agent—for additional remuneration the agent guarantees the payment of the price of the goods sold to the principal
a confirming agent—this type of
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