Agency agreement: Art. 1005 of the Civil Code, the main features

If there is a need to endow a third party with the duties of an intermediary who will perform certain functions or powers, then you need to conclude an agency agreement. This issue is described in more detail in Art. 1005 of the Civil Code of the Russian Federation. Here, the relations of the parties are regulated, and the features of this type of agreement are also prescribed.

Basic concepts

Under the agency agreement understand the type of civil law agreement, which regulates the relationship of the contractor and the customer. According to paragraph 1 of Art. 1005 of the Civil Code of the Russian Federation, the agent assumes the obligation for a certain amount to perform operations on its own behalf, but at the expense of the customer, or on behalf of and at the expense of the customer. In the first case, the agent after the transaction acquires the rights and obligations to a third party, in the second - the rights and obligations appear with the principal.

In essence, an agency agreement replaces either a commission agreement or a commission agreement.

After the conclusion of the agreement, the contractor must perform actions in the interests of the customer. Moreover, if the actions are of a legal orientation, then such powers should be spelled out in the agreement. In turn, the principal must pay for the work of the contractor.

Basic conditions and features

Given Art. 1005 of the Civil Code of the Russian Federation, several essential terms of the agreement can be distinguished:

1. Thing. These can be both legal actions and actual ones.
2. Indication of the person on whose behalf the agent acts. In some cases, one agreement may stipulate conditions under which an agent can make one transaction on his own behalf and another on behalf of the customer.

Agency agreement has a number of features:

• Long-term nature: an agent agreement cannot be signed for any one transaction. In other words, the contractor must perform (and not commit) specific actions for the customer.
• The actions of the contractor may be limited to one territory.
• There may be an agreement that the contractor does not conclude such agreements with other customers, and the customer does not work with other agents.
• The customer is obligated to finance the contractor to carry out his own assignments.
• It is possible for the contractor to conclude a subagent agreement, that is, when the agent transfers his duties to a third party. This provision does not apply when an exception to this possibility is specified in the contract.

The main advantage of the agency agreement is a wide range of actions. This type of agreement took into account all the effective parties to the commission agreement and the commission agreement.

Validity

The validity period of the agreement does not apply to the essential conditions, as it can be concluded for a certain time, and without specifying the validity period. Accordingly, if the agreement is concluded for a specific period, then its term will expire after the specified period. If the agent and the principal have concluded the contract without specifying the term, then it can be terminated unilaterally when one of the parties refuses to fulfill its obligations. An indefinite agreement takes place, since it is always of a continuing nature.

There are also a number of circumstances in which the agency contract is canceled:

• death of the performer;
• recognition of the contractor as incompetent or partially incompetent;
• recognition of the performer as missing;
• the presence of facts that recognize the executor as bankrupt (this applies to situations where the agents are private entrepreneurs or commercial organizations).

Payouts

All questions about remuneration, the timing and procedure for payment should be indicated in the agency agreement.If there is no such item, then payments shall be made in accordance with the established tariffs for similar services. If the payment terms are not indicated, then the agent must be rewarded for the work performed no later than a week after the submission of reporting documents.

Proper drafting

Given the provisions of Article 1005 of the Civil Code of the Russian Federation, when drawing up an agreement, several features must be taken into account:

1. The subject of the contract involves an indication of the services that will be provided by the agent: legal services, services for the sale or purchase of various goods or real estate, etc.
2. It is mandatory to indicate on whose behalf the performer acts (you can choose a mixed version).
3. The agreement should indicate the validity period of the document, or it will be considered unlimited.
4. The contract should regulate the procedure for reporting by the contractor: the timing and type of reporting confirming all expenses of the agent.
5. The procedure for remunerating an agent for work done.
6. The agreement may contain a clause restricting the rights of both parties.
7. The agency agreement cannot determine the circle of principals for the contractor.
8. Mandatory is the clause on the possibility of concluding a subagent agreement by the contractor.
9. Reasons for termination of the contract.

According to Art. 1005 of the Civil Code of the Russian Federation, an agency agreement cannot be used in some areas of non-governmental activity. This includes:

• food sales;
• gas supply and electricity supply.