Nature and types of agency


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert
Practice notes

Nature and types of agency


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert

Practice notes
imgtext

This Practice Note is an introduction to agency. It describes the essentials of the agency relationship between the principal and the agent including the ways in which an agent is appointed to act on behalf of a principal, the different types of agency appointments and the authority that an agent has to act on behalf of a principal.

Nature of agency

Agency is a relationship under which a principal appoints an agent to act under their direction and on their behalf for specified purposes. In business, such purposes are commonly the introduction or conclusion of contracts between the principal and customers or other third parties. The term ‘agent’ is sometimes used loosely in business and may refer to those, eg distributors, whose activities are similar to those of agents but who are not agents in law.

In commercial matters, the parties will normally have a written agreement that sets out:

  1. •

    the scope of the agent's authority

  2. •

    the parties' rights and duties

  3. •

    under what circumstances and with what consequences the agency can be terminated

  4. •

    general commercial

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Agency definition
What does Agency mean?

Agency is a legal relationship between an agent who is a person having the authority or capacity to create legal relations between a principal and third parties.

Read more

Popular documents

Nature and types of distributorship

Nature and types of distributorshipSTOP PRESS—Impact of the Retained EU Law (Revocation and Reform) Act 2023: This document contains references to retained EU law (REUL) and associated terms introduced by the European Union (Withdrawal) Act 2018 in connection with Brexit. From 1 January 2024, REUL

Agent and principal relationships with third parties

Agent and principal relationships with third partiesThis Practice Note deals with the relationships arising between principals, agents and third parties with whom the agent deals on the principal’s behalf. It considers the principal’s liability for its agent, agent’s authority including remedies for

Nature and types of agency

Nature and types of agencySTOP PRESS—Impact of the Retained EU Law (Revocation and Reform) Act 2023: This document contains references to retained EU law (REUL) and associated terms introduced by the European Union (Withdrawal) Act 2018 in connection with Brexit. From 1 January 2024, REUL that

Sub-agency

Sub-agencyThis Practice Note discusses the personal nature of an agency relationship, and the circumstances in which the agent may delegate its authority to a third party or sub-agent.The general rule, arising from the personal nature of an agency, is that an agent may not entrust to another the