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Civil law. Part II. Contents of the agency agreement (the most important)

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68. CONTENT OF THE AGENCY AGREEMENT

Principal's obligations:

▪ pay the agent remuneration in the amount and manner established in the agency agreement. If the amount of remuneration is not defined in the contract, then it should be determined in accordance with clause 3 of Art. 424 Civil Code, i.e. at the price of a similar service. If the procedure for paying remuneration has not been determined, the principal is obliged to pay it within a week from the moment the agent submits to him a report for the past period (dispositive norm) (Article 1006 of the Civil Code);

▪ inform the agent about any objections he has regarding his report within 30 days from the date of receipt of the latter (dispositive norm) (clause 3 of Article 1008 of the Civil Code);

▪ not to enter into similar agency agreements with other agents operating in the territory specified in the agreement and not to act independently in this territory in the same way as an agent, if this is specified in the agreement (clause 1 of Article 1007 of the Civil Code);

▪ authority for transactions made by an agent arises with the principal only if the agent acted on his behalf and at his expense (clause 3 of Article 1005 of the Civil Code).

Agent Responsibilities:

▪ must not conclude similar agency agreements with other principals, which must be executed in the same territory, if this prohibition is specified in the agreement (clause 3 of Article 1007 of the Civil Code);

▪ not to sell goods, perform work or provide services exclusively to a certain category of buyers (customers) living or located in the territory specified in the contract (clause 3 of Article 1007 of the Civil Code);

▪ submit reports to the principal in the manner and within the time limits stipulated by the agreement (clause 1 of Article 1008 of the Civil Code);

▪ attach to the report the necessary evidence of expenses incurred at the expense of the principal (clause 2 of Article 1008 of the Civil Code);

▪ authority for transactions made at the expense of the principal arises with the agent only if he acted on his own behalf (Part 2, Clause 1, Article 1005 of the Civil Code).

Agent rights:

▪ receive remuneration for fulfilling the principal’s instructions (Part 1 of Article 1006 of the Civil Code);

▪ enter into a subagency agreement with another person, while remaining responsible for the actions of the subagent to the principal (clause 1 of Article 1009 of the Civil Code).

The agency contract is terminated due to the refusal of one of the parties to fulfill the contract concluded without determining the expiration date for its validity; death of an agent; recognition of the agent as incapable, partially incapacitated or missing; recognition of an agent - an individual entrepreneur as bankrupt.

Relations arising from an agency agreement are subject to the rules on agency agreement, if the agent in relations with third parties acted on principal's name, or rules about commission agreement, if the agent in relations with third parties acted on your name. These rules are applied subsidiaryly and only if they do not contradict the norms of Chapter. 52 of the Civil Code, dedicated to agency.

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