The role of agents in contract negotiation can be difficult. An agent can sign a contract that creates a legally binding commitment for your business. Chapter three of the Principles of European Contract Law covers all aspects of what an agent can and cannot do. However, the actual authority for an agent to act will be dealt with in a separate contract between the agent and your business.
Chapter three explains how to deal with issues such as the authority to act. Aunthority can be clearly stated or implied. It also covers cases where an agent clearly acts outside their authority.
Separate clauses deal with other aspects of the relationship between the agent and both:
- your business
- the other parties to the contract