A commercial agent contract is a legally valid contract that creates a trust relationship in which the first party (“the principal”) agrees that the actions of a second party (“the agent”) bind the client to subsequent agreements of the agent, as if the contracting authority had itself concluded the subsequent agreements. The power of the agent to retain the client is generally considered to be a legal power. The agency created by an agreement can be a form of implied authority, for example. B if a person gives their credit card to a close relative, the cardholder may be asked to pay for the parent`s purchases with their credit card. Unlike agents, merchants buy products from the supplier and then distribute them on their own behalf to customers in a given area, allowing them to take control of pricing and the profits that flow from it. Given its seniority and the plethora of litigation it generates, the status of commercial agents is the subject of classic solutions that judges must remember regularly. Nevertheless, it is the seat of difficulties, whether recurrent or new, which are not always (…) Despite the comfort and necessity of agency contracts, there may be some drawbacks. The main risk in the legal relationship between the payer and the holder is that the contracting entity may be held liable for faults committed by the supplier. Where an agent commits an error or carries out an illegal activity while representing the client, it is technically possible to consider that the contracting entity committed the act, since the agent was essentially acting `as` the payer. An agency contract is necessary to settle the relationship between the company (as the client) and the agent. It should define what has been agreed between the parties and, in particular, set limits on what the procuring entity authorizes to do on its behalf.
The terms of such agreements should be the subject of in-depth reflection. If the intermediary has too many powers, he may, on his basis, bind the contracting authority to an end customer whose consent the contracting entity itself has not given. What happens when an individual representation contract is terminated depends on what is in the agreement. .