CONSIDERING that the company and the agent wish to enter into an agreement under which the agent markets and sells the product in accordance with the conditions contained therein. You may consider that any person considered by the company to be a representative of the company has been duly appointed and is entitled to exercise the powers and perform the duties usually performed or performed by such a director or agent of a similar enterprise (§ 129 (3)). This hypothesis exists even when the agent acts fraudulently or draws up a document in the context of a transaction (Article 128(3)). Many States apply the rule of equal dignity, according to which the agency contract must be in writing, even if the subsequent contract must be in writing anyway, for example. B a contract for the purchase of goods worth thousands of dollars. This may include inviting you to consult documents attesting to their authority, such as.B. a copy of the decision of the company`s board of directors and a copy of its articles of association. An agency contract is entered into when a person, called an agent, is authorized by another person, the so-called Principal, to act on behalf of the Principal. A sponsor who assigns an agency to an agent establishes a legal relationship with the agent. Agency contracts are important for businesses because you can meet with them if you ask a salesperson, accountant, lawyer, or other third party to do business on your behalf. An agent`s authority can be explicit or implicit.
Express authority is the authority that an instructing party of the company has expressly given to the agent (orally or in writing), and implied authority is the power that an agent has to act (z.B. the implementation of contracts) which are reasonably incidental and necessary for the effective performance of its tasks. Implied authority can arise simply by employing someone in a role to which authority is attached. Agency contracts can have many advantages for the client, especially if this client is a small contractor. Few people have all the special skills needed to run a business, so asking a professional to act on your behalf as an agent saves you time and helps you manage your affairs more efficiently. The use of an advertising agency is an example or outsourcing of staff functions. It is also common for this power to rest with the directors of the company and the power to act as a representative of the company may be conferred by a decision of the board of directors of the company. . . .