The agency agreement is concluded in a simple written form, it must provide for specific legal and other actions that the agent undertakes to perform. Despite the absence of other conditions binding for inclusion in the agreement, it is recommended to specifically stipulate some provisions when drawing up an agency agreement.
An agency agreement is concluded between the principal and the agent, the latter undertaking to perform certain legal and other actions on behalf of and at the expense of the former (or on his own behalf and at the expense of the principal). The contract is drawn up in a simple written form, does not require state registration.
In this case, as a prerequisite, you should specify a certain type of action or at least the field of activity in which the agent will perform legal and other actions. Specific actions in the contract can be omitted, most often it is not possible to do this, therefore the current legislation and judicial practice consider it sufficient to indicate the general powers of the agent.
What conditions are recommended to be included in the agency agreement?
It is recommended to include a condition in the agency agreement about how the agent acts. If he performs conditional actions on behalf of and at the expense of the principal, then this condition should be indicated. The term of the agency agreement and the amount of the agent's remuneration are not mandatory conditions; in their absence, the agreement is considered concluded for an indefinite period, and the amount of remuneration is determined at average prices for similar works and services.
Nevertheless, the agreement of these conditions will avoid unnecessary problems and misunderstandings. In addition, it is recommended to stipulate in the contract the terms, the procedure for paying the agency fee, the periods and the procedure for submitting the agency report on the actions performed under the contract.
What restrictions for an agent can be included in the contract?
Agency agreements are often concluded for the purpose of distributing any products or services. That is why the law makes it possible to include in the contract a restriction for an agent, who can be prohibited from concluding similar contracts with other principals in the same territory or in a locality partially coinciding with it during the term of this agreement. In addition, some principals are reluctant to allow agents to enter into sub-agent contracts, despite retaining the agent's responsibility.
In the absence of a special condition, the right to attract subagents remains, therefore this limitation should also be specifically included in the agreement. The grounds for terminating an agency agreement are determined by civil law, however, the agreement itself can provide for cases of unilateral refusal to execute it.
