Structure of the agency agreement for the provision of services

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The agency agreement must define the subject matter. Otherwise, the document cannot be considered valid. If there are unresolved issues, the provisions of the Civil Code of the Russian Federation apply. However, other conditions may be included in the agency agreement.

Subject of the agreement

The subject of the agreement defines the actions that the agent must perform on behalf of the customer. For example, this could be selling goods on a marketplace or selling travel packages.

Rights and obligations of the parties

Rights and obligations may also be defined in the agreement. For example, the parties may limit the agent's territory of operation or specify that he must carry out a certain volume of sales or purchases.

It is also possible to add additional rights. For example, the afghanistan email list 168973 contact leads parties may determine that the agent has the right to engage subagents to fulfill its obligations.

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Remuneration and payment procedure

It is important to include a section on remuneration and payment procedures in the agency agreement to avoid possible disputes between the parties.

Typically, an agent's remuneration is determined in one of three ways:

Fixed amount. For each transaction or unit of goods, depending on the nature of the agent's activity, a certain fixed amount is set. For example, when selling travel packages, an agent can receive 3,000 rubles for each package sold.

A percentage of sales or purchases. For example, an intermediary may receive 7% of the total cost of products sold excluding VAT.

A markup on the price of a product, service or work. The customer specifies the minimum selling price, and the agent has the right to apply his markup, thanks to which he will receive income.

It is also important to agree on the form of payment of remuneration between the parties. The intermediary may choose to withhold his remuneration from the buyers' payment, or the customer will make separate payments.

The parties establish payment terms:

The customer can provide advance payments, for example, before the fifteenth of each month.

An agent can receive a commission from each sale.

The principal may remunerate the agent monthly for the volume of work performed, for example, within ten working days after receiving the agent's report.

In the absence of a clear description of the procedure for payment of remuneration in the agreement, the customer is obliged to make payment within seven days after receiving the report from the agent.

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Distinction between the property of the agent and the principal

The property that has been transferred to the agent or acquired by him at the expense of the client is the property of the principal. The agent is responsible for its safety, integrity and proper use.

The legislation already establishes these principles, but adding a corresponding clause to the agreement will still be required. This will help avoid disagreements and conflicts between the parties. The agreement can specify the amount of possible penalties for the agent in the event of loss or damage to the customer's property.

Termination of the agency agreement

Termination of an agency agreement can be carried out in various ways depending on its characteristics:

If the contract is open-ended, it can be unilaterally terminated at any time.

Agreements with a fixed term may be terminated by mutual agreement of the parties or in the event of a material breach of the terms of the document by one of the parties.

The customer has the right to cancel the task assigned to the agent at any time and terminate the contract, even if the terms and conditions specified a specific period of validity of the agreement.

Specification of the terms of the framework agreement

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For example, in one of the regions, an individual entrepreneur who sold real estate to an organization entered into an agency agreement for a year. However, the company decided to terminate it early because it had formed its own sales department.

The entrepreneur expressed dissatisfaction and drew attention to the fact that, according to Article 1010 of the Civil Code of the Russian Federation, unilateral termination of an agreement is only permissible if it is indefinite. The parties resolved the conflict in court.

The judges referred to Article 1011 of the Civil Code of the Russian Federation, which states that the rules on the agency agreement apply to the agency agreement if the intermediary acts on behalf of the principal. These rules provide for the possibility of refusing the document at any time.

This provision also applies to cases where the agent acts on his own behalf. The rules on the commission agreement apply to the relations between the parties. The legislation also allows for the unilateral cancellation of the assignment.

The agency agreement is cancelled in the following cases:

Death of the mediator.

Recognition of an agent as incapacitated or with limited capacity.

Declaring a person missing through mediation.

Declaring an agent-individual entrepreneur bankrupt.

Case: VT-metall
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