Guide

Contract law in Europe

The role of the agent in European contract negotiation

The role of agents in contract negotiation is a potentially difficult one, because 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, although 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 - which can be clearly stated or implied - but 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 and the other parties to the contract.