The principal is who?
At the conclusion of the agency contract, one party undertakes to commit legal or other actions for remuneration. This can be done in two ways. In the first case, the agent acts on his own behalf and at the expense of the second party. In the second - the execution is carried out from the person and the means of the other party.
Parties to the contract
The principal is the party that delegates authority to another party to the transaction to perform the above actions. Simply put, he is the customer. The agent acts as a performer. He is an intermediary providing services to the principal. For his work, the agent receives a reward. If he acts on his own behalf, he acquires the corresponding rights and obligations arising from the transactions made by him.
When signing an agency agreement, the principal acquires legal opportunities in the first place. This means that he has the right to demand from the performer a report on the work done by him. Upon receipt of the documentation, the customer may submit their objections.Speaking as the main person of the agreement, he is entitled to require the agent to refrain from entering into identical transactions with other persons. However, this is not possible in all cases. Expose such a requirement is allowed if the territory of the main and identical agreements coincide. The principal is also capable of initiating termination of the transaction. This can occur for various reasons. However, in any case, the customer is obliged to pay to the performer all the amounts of remuneration and expenses put to him.
There are certain requirements that the principal must comply with. It:
- Payment of agency fees in accordance with the terms of the agreement or according to the customs of business turnover.
- Issuance of power of attorney if it is provided that the principal acts as the person on whose behalf the agent will act. This, in turn, entails the occurrence of corresponding duties at the customer.
- Providing the agent with funds, the amount of which will be sufficient for the effective and successful execution of the assigned task, or reimbursement of expenses incurred.
For legal relations arising from the agency agreement, the rules established for commission transactions or agreements on the order. In this case, everything will depend on the way the agent performs the appropriate actions. If he performs the order on his own behalf, the rules of the commission agreement apply. However, you should know that this provision is valid in the part that does not contradict the provisions of the Civil Code on agency and with the content of the main agreement itself.
Terms of the transaction
In the contract of agency must be determined the subject of the transaction. It serves as a listing of the actual, legal actions that the contractor will perform. In addition, the essential item is the definition of the method of execution of the order. Within the framework of a single agreement, actions are allowed both in one’s own name and on behalf of the principal. In the absence of these conditions, the agreement is void.
On its basis, the wiring of the principal is formed. The obligation to provide documentation acts as one of the main performers.At the same time, domestic legislation does not impose specific requirements on the content and form of the report. This, in turn, gives rise to disputes between the participants, if they have not previously agreed on the provision of documentation. However, there is a general reporting procedure provided for in Federal Law No. 402. In Art. 9 of this law, there is a unified list of details considered to be mandatory for records, to which, in particular, the agency report refers:
- Title of the document.
- Date, month and year of formation.
- The name of the organization on whose behalf the document is made.
- Description of the operation performed (the agent in this case indicates the actions performed by him).
- Meters (physical and monetary indicators).
- The name of the persons responsible for the design and content of operations.
The absence of at least one of the given details is the basis for the invalidation of the document.
Documents confirming expenses incurred by the contractor are attached to the agency report.Their list may be provided for in the main contract. If the agreement does not specify specific documents, the principal may request any of them, and the agent, in turn, must provide them. In this case, however, the customer can use the information obtained from the papers about the counterparties with which the agent worked, and begin to cooperate with them independently. In order to avoid such situations in the main agreement there may be restrictions for the principal.