Relationship of principal and agent

Published by a ��Ӱ�� Commercial expert

Practice notes

Relationship of principal and agent

Published by a ��Ӱ�� Commercial expert

Practice notes

This Practice Note explains the rights and duties of an agent and a principal towards each other, including those implied by law and those set out in the agency agreement. It considers the status of the appointment of an agent and the fiduciary duties owed by an agent to its principal. It also considers the remedies for breach of duty including claims for damages and claims for account.

General

In business matters, the rights and duties of principal and agent are normally set out in a written agency agreement. Additional rights and duties may be implied by law if not contained within the agency agreement. In particular, the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 impose specific provisions in respect of commercial agents, which in most cases cannot be excluded by contract. Where commercial agents are concerned see Practice Notes: Commercial agency, Relationship of commercial agent and principal and Termination of commercial agency arrangements.

An agency relationship is one of trust. The agent thus owes the principal fiduciary as well as contractual duties (established in Parker

Jurisdiction(s):

United Kingdom

Key definition:

Agency definition

What does Agency mean?

Agency is a legal relationship between an agent who is a person having the authority or capacity to create legal relations between a principal and third parties.

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