Agency contract and its difference from other mediation (+ contract templates)

Agency activity is always entrepreneurial activity. So, the corresponding registration and the corresponding KVED for the implementation of agency activities are necessary.
An agency agreement is an agreement under which one party (a commercial agent) provides services to the other party (the entity he represents - the principal or the principal) in concluding agreements or facilitates their conclusion (provides actual services) on behalf of this entity and at his expense ...
The agency agreement is concluded in writing. The commercial agent receives an agency fee. An agent cannot entrust his obligations to other persons, unless otherwise provided by the agency agreement itself.
For an agency agreement, the provision of a power of attorney is not mandatory (in contrast to the ID of the agency agreement). Entrepreneurs are not commercial agents who act in the interests of others, but on their own behalf. Such legal relations fall under the signs of a commission agreement.
An agency agreement is different from a commission and commission agreement, although they are all intermediary agreements.
The commercial agent informs the subject, whom he represents, about each case of his mediation in the conclusion of agreements and about each agreement concluded by him in the interests of this subject.
Examples of agency contracts are travel and insurance services, transportation of goods and passengers, and the like.

Commercial intermediation (agency activity) is an entrepreneurial activity consisting in the provision of services by a commercial agent to business entities in the course of their business activities through intermediation on behalf of, in the interests, under the control and at the expense of the entity he represents (Part 1 of Art. 295HC of Ukraine) ...

In accordance with Art. 296 HC of Ukraine, agency relations arise in the event of:

granting by a business entity, on the basis of an agreement, powers to a commercial agent to take appropriate actions;

approval by a business entity represented by a commercial agent of an agreement concluded in the interests of this entity by an agent without the authority to conclude it or in excess of the authority granted to him.

Under the agency agreement, one party (commercial agent) undertakes to provide services to the other party (to the entity represented by the agent) in concluding agreements or to facilitate their conclusion (provision of actual services) on behalf of this entity and at its expense The agency agreement must determine the scope, nature and procedure performance of intermediary services by a commercial agent, the rights and obligations of the parties, the conditions and amount of remuneration to the commercial agent, the term of the contract, sanctions in case of violation by the parties of the terms of the contract, other necessary conditions determined by the parties. (part 1, 2, article 297 of the HC of Ukraine).

Commercial agent, in accordance with Part 2 of Art. 295 of the HC of Ukraine, there may be a business entity (citizen or legal entity), which, according to the powers based on the agency agreement, carries out commercial intermediation.

At the same time, according to Part 3 of Art. 295 of the HC of Ukraine, are not commercial agents, entrepreneurs who act, albeit in the interests of others, but on their own behalf. Such legal relations fall under the signs of a commission agreement (Article 1011 of the Central Committee of Ukraine).

A commercial agent cannot make transactions on behalf of the person he represents, regarding himself personally (part 4 of article 295 of the HC of Ukraine). At the same time, the commercial agent must personally perform the actions for which he is authorized by the entity he represents. Unless otherwise provided by the agency agreement, a commercial agent cannot transfer at his own discretion to other persons the rights that he possesses in the interests of the one he represents (Article 300 of the CC of Ukraine).

In accordance with Art. 298 of the HC of Ukraine, a commercial agent informs the subject he represents about each case of his mediation in the conclusion of agreements and about each agreement concluded by him in the interests of this subject. An agreement concluded on behalf of an entity represented by a commercial agent, without the authority to conclude it or in excess of the authority granted to it, is considered approved by this entity, provided that it does not reject the actions of the commercial agent in front of a third party. Subsequent approval of the transaction by the entity represented by the agent makes the transaction valid from the date of its conclusion.

The agency agreement must provide for a condition on the territory within which the commercial agent carries out the activities determined by the agreement of the parties. If the territory of the agent's action is not defined in the contract, it is considered that the agent operates within the territory of Ukraine (part 3 of article 297 of the HC of Ukraine).

Agency agreement, in accordance with Part 4 of Art. 197 HC of Ukraine, is in writing. The contract must define the form of confirmation of the authority (representation) of the commercial agent.

According to the agency agreement, a commercial agent receives an agency fee for intermediary operations carried out by him in the interests of the subject he represents, in the amount provided for by the agreement. The agency fee is paid to a commercial agent after payment by a third party under an agreement concluded with his mediation, unless otherwise provided by the contract parties. The parties may stipulate in the agreement that the commercial agent is paid additional remuneration if he undertakes to guarantee the implementation of the agreement concluded by him in the interests of the entity he represents (Article 301 of the CC of Ukraine).

The grounds for termination of the agency agreement are defined in Art. 304 HC of Ukraine. Thus, an agency agreement is terminated by agreement of the parties, as well as in the case of: revocation of the powers of a commercial agent by the entity he represents, or refusal of a commercial agent to further carry out commercial intermediation under an agreement concluded by the parties without determining its validity period; the disposal of one of the parties to the contract due to its termination or death; the occurrence of other circumstances that terminate the powers of a commercial agent or an entity that he represents. In case of revocation of the powers of a commercial agent, the entity represented by the commercial agent must notify him of the termination of the contract at least one month in advance, unless a longer period is provided for by the contract. In case of elimination (termination) of the circumstances that led to the termination of the powers of the commercial agent, these powers may be restored by agreement of the parties.

We warn you that you should not equate the agency agreement and the agency agreement. So, under the contract of order (Art. 1000 of the Civil Code of Ukraine), one party (attorney) undertakes to perform certain legal actions on behalf and at the expense of the other party (principal). A transaction made by an attorney creates, changes, terminates the civil rights and obligations of the principal. If under an agency agreement, both actual and legal actions can be performed, then under an agency agreement, only legal ones.

You can fill out the agency agreement in Ukrainian by following the link. The agreement will be filled in automatically with the data if you keep a register of your counterparties in the InstaDoc electronic document management system. Also, you can fill out an agency agreement in English and make a bilingual agency agreement in Ukrainian and English.