Agency agreement for the provision of services: structure and rules for drafting

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What are we talking about? An agency agreement for the provision of services is a document obliging the agent to perform the work assigned to him by the customer. This may be searching for clients or partners, conducting research, or services for the sale of goods.

What to pay attention to? Regardless of the type of service, the customer (also the principal) pays for the agent's work, and the agent acts on his own behalf or on behalf of the employer. However, this must be recorded in the document.



The article explains:

The concept of an agency agreement
Pros and cons of an agency agreement for the provision of services
Who needs an agency agreement for the provision of services
Structure of the agency agreement for the provision of services
Reporting on agency agreement for provision of services
Accounting for agency agreements
Tax accounting of agency agreements for the provision of services
Frequently asked questions about the agency agreement for the provision of services

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The concept of an agency agreement
An agency agreement for the provision of services is an afghanistan email list 168973 contact leads agreement under which an agent must perform certain actions on behalf of the principal, at the principal's expense and on his behalf. In such a case, the rules on the agency agreement apply, and the obligations under the agreement are imposed on the agent. If the agent performs tasks on his own behalf, then the rules on the commission agreement apply, and the obligations under the document are imposed on the principal.

Agency agreement

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The parties to the agreement are the agent (intermediary) and the principal – the one who receives real benefit from the actions of the intermediary. For the agent, the main interest is to receive remuneration for the execution of orders.

The distinctive feature of such an agreement is that the agent carries out assignments on behalf of and at the expense of the principal. The intermediary does not finance its activities. Assignments under the agency agreement may be either legal services or any other.

It is important to note that agreements between an agent and a client sometimes do not specify on whose behalf the intermediary will act. However, even if the principal is mentioned, if the document is concluded on behalf of the agent, there are not sufficient grounds for including the customer in the relationship with the clients. In such an agreement, the responsibility lies with the agent. He independently resolves any conflicts with consumers, retaining the right to make claims against the principal.

Features of the agency agreement
Let's consider the distinctive features of an agency agreement from other types of agreements:

From the purchase and sale: in the document we are considering, the goods do not become the property of the agent.

From the provision of services: specific intermediary relationships are created between the parties.

From the contract: in the agency agreement, the intermediary must perform certain work.

From delivery: the costs are usually borne by the principal (including delivery costs). However, the ownership of the goods does not pass to the agent.

The difference between an agency agreement and other intermediary agreements, such as a commission and a commission, is that the agent has the opportunity to perform not only legal but also other actions on behalf of the customer. The judicial authorities directly indicate that an agency agreement is not concluded for the implementation of one-time transactions.

When such an agreement is concluded, a special, long-term agency relationship arises, where the agent performs various tasks at the expense of the principal.