Power of Attorney Agreement as one of the types of intermediary agreements (+ Power of Attorney Agreement template)

One of the types of intermediary agreements, along with an agency agreement and a commission agreement, is a Power of Attorney Agreement.

Under a Power of Attorney Agreement, one party (attorney) undertakes to perform certain legal actions on behalf and at the expense of the other party (principal). The transaction made by the attorney creates, changes, terminates the civil rights and obligations of the principal. The Power of Attorney Agreement may establish the exclusive right of the agent to perform all or part of the legal actions provided for by the agreement on behalf and at the expense of the principal. The agreement may establish the validity period of such an order and (or) the territory within which the exclusive right of the attorney is valid. (Article 1000 of the Civil Code of Ukraine).

Therefore, the parties to the contract of commission are called the attorney and the principal, they can be any individuals and legal entities.

At the same time, the principal is obliged to issue a power of attorney to the attorney to perform legal actions provided for by the contract of agency (part 1 of article 1007 of the Civil Code of Ukraine). At the same time, the attorney must fulfill the order given to him personally (part 1 of article 1005 of the Civil Code of Ukraine) and is obliged to perform actions in accordance with the content of the order given to him. The attorney may deviate from the content of the assignment if the interests of the principal so require and the attorney could not ask the principal beforehand or did not receive a response to his request within a reasonable time. In this case, the attorney must inform the principal about the deviations from the content of the order as soon as it becomes possible (part 1 of article 1004 of the Civil Code of Ukraine).

Also, the attorney can act as a commercial representative, in accordance with Art. 243 of the Civil Code of Ukraine, then the principal may be granted the right to deviate in the interests of the principal from the content of the order without a prior request about it. The commercial representative must, within a reasonable time, notify the principal of the deviations from his instructions, unless otherwise provided by the contract (part 2 of article 1004 of the Civil Code of Ukraine).

In addition, the attorney has the right to transfer the execution of the assignment to another person (substitute), if this is provided for by the contract or if the attorney was forced to do so by circumstances in order to protect the interests of the principal. The attorney who transferred the execution of the assignment to the deputy must immediately inform the principal about this. In this case, the attorney is only responsible for choosing a substitute. The principal has the right at any time to reject the substitute chosen by the attorney. If the attorney's deputy was specified in the contract of agency, the attorney shall not be liable for the choice of the deputy and for the actions performed by him. If the contract of agency does not provide for the possibility of acting by a deputy attorney or such a possibility is provided, but the deputy is not specified in the contract, the attorney is responsible for choosing a deputy (Article 1005 of the Civil Code of Ukraine).

The essential terms of the power of attorney agreement, as well as any other business agreement, in accordance with Art. 180 of the Civil Code of Ukraine, there is a subject, price and term of the contract.

Consequently, the subject of the contract of commission is the commission by the attorney of certain legal actions on behalf and at the expense of the principal. At the same time, in the contract of commission or in the power of attorney issued on the basis of the contract, the legal actions to be performed by the attorney must be clearly defined. The actions to be performed by the attorney must be lawful, specific and feasible (Article 1003 of the Civil Code of Ukraine).

Term of the power of attorney. The contract of commission may determine the period during which the attorney has the right to act on behalf of the principal (Article 1001 of the Civil Code of Ukraine).

The price of the power of attorney. The principal is obliged to pay a fee to the attorney if it belongs to him (part 4 of article 1007 of the Civil Code of Ukraine), and the attorney has the right to a fee for fulfilling his obligation under the contract of agency, unless otherwise provided by the contract or law. If the commission agreement does not specify the amount of the fee to the attorney or the procedure for its payment, it is paid after the execution of the commission in accordance with the usual prices for such services (Article 1002 of the Civil Code of Ukraine).

At the same time, the principal is obliged, unless otherwise provided by the contract, to reimburse the attorney for the costs associated with the execution of the order (clause 2, part 2, article 1007 of the Civil Code of Ukraine).

Form of a power of attorney agreement. As a general rule, a commission agreement is concluded in a simple written form (Article 208 of the Civil Code of Ukraine), however, the parties may voluntarily conclude such a transaction in a notarial form (part 4 of Article 209 of the Civil Code of Ukraine).

As in other intermediary agreements, under a power of attorney agreement, the principal does not become the owner of what he received in the course of certain legal actions.

For more information about other types of mediation, you can find in the article Power of Attorney Agreement and its difference from other mediation (+ agreement templates) and Commission agreement as one of the types of intermediary agreements (+ template Agreement for the provision of a set of advertising, information and organizational services).

You can fill out the Assignment Agreement by following the link. The contract will be filled in automatically with data if you keep a register of your counterparties in the InstaDoc electronic document management system.