When it comes to business relationships, having a clear and defined agreement is crucial to avoid misunderstandings and disputes. One type of agreement that is commonly used in the corporate world is agency by express agreement.
In simple terms, agency by express agreement is when two parties enter into a formal contract or agreement that outlines the roles, responsibilities, and obligations of each party. In this type of agreement, one party (the principal) hires another party (the agent) to perform specific tasks or services on their behalf.
An example of agency by express agreement could be a company hiring a marketing agency to run their social media campaigns. The agreement would outline the scope of work, payment terms, and any other relevant details. The marketing agency would act as the agent, executing the agreed-upon tasks, while the company would be the principal.
One of the main benefits of agency by express agreement is that it provides legal protection for both parties. The contract clearly defines the terms of the relationship, ensuring that there is no confusion over who is responsible for what. If one party violates the terms of the agreement, the other party can take legal action to enforce the contract.
It`s important to note that agency by express agreement is different from agency by implied agreement, which is when an agency relationship is assumed based on the behavior of the parties involved. For example, if a company consistently uses the services of a marketing agency without a formal contract, an agency relationship may be implied.
In conclusion, agency by express agreement is a formal contract between two parties that outlines the roles, responsibilities, and obligations of each party in an agency relationship. It provides legal protection for both parties and ensures that there is no confusion over who is responsible for what. If you`re considering hiring an agency, make sure to enter into a clear and comprehensive agreement to protect yourself and your business.
Entries (RSS)