Agent agreements


Agent agreements are contracts between two parties; an agent and a principal. Parties to agent agreements can be both individuals and companies. The main goal of these agreements is to allow the agent to act on behalf of the principal, legally binding the principal to agreements they enter.

This relationship places much power in the hands of the agent. The law therefore places the agents under fiduciary duties, ensuring that the agent’s behaviour will always be for the benefit of the principal. In a business setting, company directors are said to have agent agreements with the company, where they serve as agents and the company is the principal. With company law the fiduciary duties are also defined in statute (specifically the Companies Act). These are set to ensure that the agent’s actions reflect their company’s best interest.

Agent agreements may arise without the need for writing, and on occasion without intent. Whenever a party permits another party to act on its behalf there is the potential for an agency agreement to arise  

If you are a party to an agent agreement, it is important for you to know what your legal requirements are, and what protections you may find in the law. Agent agreements are found in all areas of law, but most legal issues and disputes arise from contract law and from land or property law. This is because in these fields the agents are often individuals who could have conflicting interests.

If you would like to obtain legal advice on agent agreements, Caven can put you in touch with a local specialist contract solicitor free of charge. So, if you have any questions or would like our help in finding local specialist contract solicitors please call us on 08001 221 2299 or complete the web-form above.

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