What Is The Meaning Of General Agency Agreement

In addition, the representative should compensate, defend and compensate the client against any claim of loss, damage, etc., caused by the negligence of a sub-agent. On the other hand, the wording of FONASBA provides that the agent is not liable for the sub-agent`s negligence unless the agent has not exercised the necessary diligence to appoint and supervise that sub-agent. In any event, it is advisable, in the same way that air carriers require without exception evidence that the representative has professional liability insurance, that the representative insists that any sub-agent appointed by him be also insured. In addition, the sub-agency agreement should, as far as possible, be reissued with the main agreement, so that the responsibilities and obligations imposed by the carrier on the negotiator can be passed on in the same way on the sub-agent. FONASBA has recently drawn up a model agreement on guardianship agencies, which meets this requirement, by accompanying the document with an excerpt from the agreement on line agencies concluded between the line and the general plenipotentiary. Compensation clauses are often included in line agency contracts. If an agent guarantees the payment of the freight to his client and takes the risk that z.B. the forwarder does not pay, the representative actually acts as an agent of the credere. If the sender is late, the principal is not obliged to seek payment of the cargo pending more than its agent. In this case, the officer could argue that he is entitled to an additional commission to take that risk.

Most agreements indicate a series of events that may allow the other party to terminate immediately or after notice. Bankruptcy or the special scheme or the composition with creditors of one of the parties is an example that usually allows for immediate termination. It is important to ensure that termination rights are reciprocal and not only in favour of the contract against a valuable consideration, as the contract of commercial agencies entitles the representative`s remuneration; The common interest contract results in compensation to the sales agent if his relationship with the client ceases. It is with these two aspects of the status of (…) While French national jurisprudence tends to reduce the scope of the qualification of the commercial agent by a limited conception of the concept of negotiation and a general condition of representation entrusted to the agent, the European Court of Justice has looked into (…). ItIC is often asked to review draft line agency contracts subject to the signature of its members. Unfortunately, while not surprising, they are often biased in favour of the line principle. This, of course, reflects the strengths and negotiating positions of both parties and the fact that competition between agents for a new appointment is often intense.