An agency contract is a type of document involving a client and an agent – the contracting authority takes over the hiring and the agent is hired for a given task. This agreement contains the general instructions of the obligations that the client needs for the agent. By an agent contract, both parties are bound by a legal obligation or a trust agreement, as well as by obligations to which they must comply. For example, the payer is expected to pay the payment agreed between the agent and the agent is also expected to execute a legitimate decision-making process that best suits the interests of the payer. While an agency contract may seem very theoretical at first glance, it has a lot of frequent and practical application cases that you`ve probably already encountered. For example, if you work with a third party, you are probably working with that third party on an agent/principle basis. Have you ever hired a lawyer? What about a broker to buy or sell real estate for you? Have you ever hired an accountant to manage your finances and pay your taxes? How about working with an investment broker to manage your personal or business assets? These are all common examples of situations in which you would sign an agency contract that gives that third party, the service provider, the right to do certain things on your behalf. You may also terminate this agreement by licensing the agent in writing. In this document, you can set the notice period. Whatever the written good of your agreement, it still has no legal value if either of the parties involved has forgotten or deliberately missed the signing of the agency contract. Once the agency contract is concluded, the agent and principal must sign two copies.
Each party is also required to keep a copy of the agreement, which means that neither party can make excuses for not being familiar with the terms if they have to visit their copy again. You can also consider signing your agent agreement or being certified by a notary in order to limit problems related to the agent or the signature of the client. Although it is most often known as an agency or agent agreement, there are several other names that can be cited. These include several benefits that are essential to signing an agency contract. In general, when you hire an agent as a client, you often get access to their special skills and knowledge to do something you couldn`t do otherwise. This could include, for example, appointing a trial lawyer on your behalf or an accountant to manage your finances.