A commission agreement is one of the most common types of intermediary agreements. He, along with the commission agreement, has been widely used in business, and not only, practice.
Instructions
Step 1
The essence of the contract of agency is the commission of any legally significant actions by the attorney on behalf of the principal. The parties to this agreement can be both citizens and legal entities. A commission should be distinguished from a surety. Although these two words sound similar, they denote obligations that are completely different in nature.
Step 2
A commission agreement is very often confused with a commission agreement. Although they are similar in meaning, they have several main differences among themselves. So, under a contract of agency, the attorney acts before third parties on behalf of the principal, while the commission agent acts on behalf of his own. The subject of the order is legally significant actions without their specification. The commission only assumes the conclusion of transactions. In addition, a commission agreement, unlike a commission agreement, may be free of charge.
Step 3
The order agreement is drawn up in simple written form and must include the following essential conditions. The preamble to the agreement clearly states that the attorney acts on behalf and in the interests of the principal. The subject of the agreement must contain a list of those actions that the principal must perform on behalf of the attorney. The following is a listing of the mutual obligations of the parties. So, the duties of the attorney include: personal execution of the order in accordance with the instructions of the principal, timely informing him, etc. The contract of order may also additionally include conditions regarding its validity period and the amount of the attorney's fee.
Step 4
The execution of the order may require certain expenses from the attorney. The principal can provide the necessary funds prior to the commencement of the execution of the order. He can also compensate the attorney for the costs after the latter submits the report. In any case, the corresponding condition should also be written in the contract.
Step 5
Upon completion of the execution of the order, the attorney must transfer to the principal everything received under the agreement, as well as provide a report with supporting documents attached. In addition, the attorney will need to return the previously issued power of attorney.
Step 6
The principal and the attorney have the right to refuse the order at any time. In this case, the parties should stipulate in the contract a condition regarding the procedure for payment of remuneration (if any), as well as the procedure for reimbursing the costs of the attorney.
