If the parties have not agreed on notice in the agency contract, the specific termination provisions covered by Article 7:437 of the Dutch Civil Code apply, i.e. at least 4 months, plus one month after 3 years or more and 2 months after 6 years or more. Many companies today use the services of another company to represent them as representatives in their business. To do this, the company must enter into an agency agreement. In the case of a sales agency contract, the contract provides, for example.B. that the representative of the company operates as the commercial representative of the company, whether it is an exclusive relationship or not; The procedure for denouncing the agreement; How commissions are calculated and more. Within the European Union, there is legislation to provide some protection to agents, in particular the right to compensation in certain circumstances when an agency is dismissed. The same is true in other parts of the world, and in some countries it is necessary for a foreign manufacturer to designate as an agent a person or company that is a national of the country in which the Agency will operate. Despite the convenience and need for agency agreements, there may be some drawbacks. The main risk in the legal relationship between the client and the agent is that the adjudicating entity may be held liable for a fault committed by the agent.

When an agent makes an error or engages in illegal activity while representing the client, the client can be considered technically as the act, since the agent essentially acted as the “main” obligatory. An agency agreement has no form. However, a written agreement is preferable from the point of view of the evidence, but even if there is no written agreement, a judge may judge on the facts that there is an agency contract. Article 7:428, paragraph 3, of the Dutch Civil Code stipulates that each party is required to grant the other party, at its request, a written agency contract. Although the parties give a different title to the agreement (for example. B cooperation agreement), but whether they have the aforementioned characteristics of an agency agreement, this should be considered an agency agreement. In this case, the (compulsory) legislation of the Dutch law on commercial agencies applies. An agency contract is a legal contract that creates a trust relationship, with the first party (“the donor”) agreeing that the actions of a second party (“the agent”) bind the client to subsequent agreements of the agent, as if the client had himself entered into the subsequent agreements. The agent`s power to retain the client is generally referred to as an authority in law.

The agency created through an agreement may be a form of tacit authority, z.B. If a person gives his credit card to a close relative, the cardholder may be required to pay for purchases made by the parent with his credit card. Another definition of an agency agreement is the “relationship between the Authority or a person`s ability to create or influence legal relationships between another person and a third party.” It sounds more professional, but it means the same thing. As a general rule, an agency is created as follows: the termination of the agency contract is terminating.