Agency agreements

 

Agency agreements are contractual relationships between two or more parties, when one party (the agent) is able to contractually bind the other party (the principal). Agency agreements are very common, but for good reasons solicitors are often involved.

How do agency agreements work?

The agreements are sometimes between two individuals, for example:

  • An estate agent
  • A home buyer

Or, the agreements may be between two companies, for example when one company is able to contract on behalf of another.

The main goal of these agreements is to allow the agent to act on behalf of the principal, legally binding the principal to agreements they enter.

Agent agreements may arise without the need for writing, and on occasion without intent. Whenever a party permits another party to act on its behalf there is the potential for an agency agreement to arise.

Who has the legal responsibility in an agency contract?

In a corporate setting however, the most commonly seen agency agreements are between directors of a company and the company itself.

For example a director of a company (i.e. the agent) must keep in mind that his actions could be judged in a court based on whether or not they were taken with the company’s best interests in mind.

This important legal responsibility is crucial because when an agent’s ability to act on behalf of an entire company is misused, it can have adverse effects on the entire company and other companies which trade with it.

This relationship places much power in the hands of the agent. The law therefore places the agents under fiduciary duties, ensuring that the agent’s behaviour will always be for the benefit of the principal.

Company directors are said to have agent agreements with the company, where they serve as agents and the company is the principal. With company law the fiduciary duties are also defined in statute (specifically the Companies Act). These are set to ensure that the agent’s actions reflect their company’s best interest.

If you have entered into an agency agreement and you are unsure of your rights or obligations, it is vital that you see a legal professional. A breach of fiduciary duties can have very serious consequences for either party. It can be a complex legal matter to litigate, and a professional’s opinion in the early stages can help you identify what your legal options are, and how best to proceed.

For more advice on how agreements can be illegally broken, see our page on breach of contract.

Are you party to an agency agreement and a dispute has arisen throughout the course of the contract? Are you a business that needs an agency agreement drafted? Contact Law can put you in touch with specialist commercial solicitors suited for your industry, who can advise on any legalities relating to agency agreements. Please call us on 0800 1777 162 or complete the web-form above.

Call
0800 1777 162
or fill in the form
Our trained advisor contacts you
Your chosen specialist solicitor calls you
Quick enquiry form
Area of law:
Name:
Town/City:
Email:
Phone:
What our clients say about us
"This was the first time I've been to court, which was a nerve-racking experience for me. However, I felt very prepared, I understood my case and representation - this was down to you."
Gavin, criminal motoring, Oct 15
"Your service, and the prompt call back from your recommended firm was very good. I would not hesitate to call again or recommend your service."
Ian, employment law, Truro, July 15
"The firm were excellent, could not have been better! They are exactly what I need right now."
Linda, criminal defence, Thames Ditton, Jul 15
"Your contact and service was immediate and utmost professional, 10/10."
TF, conveyancing, Dudley, Jun 15
"I appreciate the service that you provide. I found you to be courteous, efficient and reassuring at a time when my confidence in justice is completely negative."
Patrick, litigation, Pontypridd, Jun 15
"I cannot tell you how much I appreciate the speed of which you came back to me in. If anyone else can benefit from your help like I have done, it would make my day."
Gail M, family law, Potters Bar, Jun 15
"Your assistance was extremely helpful. Particularly to someone who in 40 years of business has never experienced this sort of issue."
TD, commercial litigation, Galashiels, Apr 15
"It is difficult to express the value Contact Law has to someone like me who had very little understanding of the law and how to proceed forward with my case. Thank you for the service you provided."
AE, defamation law, Worthing, Apr 15
"Thank you for the efficient service I received. I was contacted by your solicitor on the same day as my request. Your quick response to my situation made me feel secure."
AN, employment law, London, Apr 15
"Your service was excellent, very fast and informative. I never got the impression of being pressurised at all. The solicitor you recommended was also excellent – very knowledgeable and supportive."
JHD, Motoring law, Liverpool, Apr 15
Contact Law supports the endeavours of STAE and commends all the work they are undertaking to assist in the plight of the Asian Elephant

 

We use cookies on the Contact Law site to help us improve it.

If you would like to allow our cookies, please click 'Continue' or carry on browsing. For more information on cookies and how to change your settings, click 'More info'.