Agency agreements

Agency agreements are contractual relationships between two or more parties, where one party (the agent) is able to contractually bind the other party (the principal). Agency agreements are very common. The agreements are sometimes between two individuals (for example an estate agent and a home buyer), or between two companies (where one company is able to contract on behalf of another).

In a corporate setting however, the most commonly seen agency agreements are between directors of a company and the company itself. As a consequence of an agency agreement, the agent owes fiduciary duty to the principal. 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.

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.

If you would like to obtain legal advice on agency agreements, Contact Law can put you in touch with a local contract solicitor free of charge. So, if you have any questions or would like our help in finding local contract solicitors please call us on 0800 1777 162 or complete the web-form above.

Last Updated on 02/03/2010