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Agency in Commercial Law

An agency is a legal relationship that arises when one person (the Agent) performs a task for another person (the Principal) that affects the legal position of the Principal with a third party (or parties).

It can arise out of conduct whether originally intended or not. It is important to get professional legal advice if you think you may be an an inadvertent agency relationship.

In Commercial Law terms Agency can be a very important and useful means to get business done. Done properly the use of Agency Arrangements can involve extending business opportunities to new areas by using experienced experts as agents.

We recommend that before giving any authority to a person as an agent that a formal Agency Agreement is drawn up.


Agency Agreements

An Agency Agreement needs to be carefully drafted to set out the terms of the agency. It usually contains provisions setting out the rights and responsibilities of the Principal and the Agent.

If an agency relationship is not created by an Agreement but by the conduct of the parties this can give rise to legal problems. A person might do something ostensibly for the principal but unless this is expressly authorised by the principal including by later ratification then the legal position may be uncertain for all involved.

Responsibilities and obligations can be defined by and limited by the use of an Agency Agreement. By documenting the Agency Arrangements in this way both Agent and Principal know the extent of the Agency and the legal position will be far clearer than leaving arrangements to chance.


Expert Commercial Law help for you

Bell Legal Group has the expertise you need when it comes to drafting clear and comprehensive Agency Agreements.

Our highly experienced Commercial Law team, headed up by partner Rob Ffrench, are here ready to advise you about Agency Arrangements and how these might be relevant to your business and commercial needs.


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Please note that the information on this web page is general in nature and is not legal advice nor is it intended to be. Always obtain professional legal advice specific to your circumstances.