Risks Associated With Agency Agreements

When an agency relationship is established, you, as the “principal”, have a number of rights and duties that you must be aware of. There will also be a number of protective measures for the agent, as set out in the Commercial Agents Regulations 1993, which apply in England and Wales. Other rights and obligations may apply in other jurisdictions. Facts and procedures. It took eighteen months for the Court of Justice to interpret the bargaining power by which the commercial agent, insinuating the disqualification of his relationship with the principal and the refusal of the status of Articles L. 134-1 and (…) Discussions on agency contracts have long focused on the distinction between “real” and “non-real” agents and who bears the risks between the client and the agent. Given that the literature on this distinction is extensive, the current article will focus on taking stock of the most recent cases in which contracting entities and/or agents have been held liable for anti-competitive conduct under Article 101(1) or 102 TFEU, in particular where the agreement has facilitated collusion or price control. In such cases, the liability of the procuring entity for the conduct of its enforcement agent is at stake. There are three types of financial or commercial risks essential to the definition of a commercial agent contract for the purposes of Article 101(1). First, there are contract-specific risks that are directly related to contracts concluded and/or negotiated by the agent on behalf of the contracting entity, such as. Β the financing of stocks.

Second, there are the risks associated with market-specific investments. These are investments which are specially necessary for the nature of the activity for which the agent has been appointed by the contracting authority, i.e. which are necessary to enable the agent to conclude and/or negotiate such a contract. These investments are usually sunk, which means that the investment cannot be used or sold for other activities after leaving that particular sector, except with a significant loss. Third, there are risks associated with other activities carried out on the same product market, in so far as the contracting entity requires the agent to carry out such activities, not as an agent on behalf of the contracting entity, but at his own risk. The guide approved by the agency contract can be sent to the client up to one month before the client signature of the contract (see section 56 of the Act). Once the agency contract has been concluded, the client and the representative should sign and print copies of the form. .

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