What is an agency agreement?
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party (“the principal”) agrees that the actions of a second party (“the agent”) binds the principal to later agreements made by the agent as if the principal had herself personally made the later agreements.
The agent is authorized by the principal to perform certain acts, for and on behalf of the principal. The principal is bound by the acts of the agent, performed in carrying out entrusted duties and within the scope of agent’s authority.
An agency can be created by:
- express agreement, whether oral or written
- implication, based on the custom or practice of the trade, or
- conduct of the principal.
Do you need an attorney to help review an agency agreement?
Agency agreements can cover a very broad range of matters (compensation, non-competes, confidentiality, etc.). If you need help with an agency agreement, it may be in your best interests to hire an attorney to represent your interests in the contract, whether you are the principal or the agent.
Further, if you have any questions or legal disputes over the agreement, your attorney can help you file a lawsuit with the court to obtain the appropriate remedy.