Business Contracts

An agency agreement implies that the agent performs a legal act in the name and on behalf of the principal, through representation. These two characteristic elements must be present for the classification as an agency agreement to be upheld, whatever the allegations of the parties. The agency agreement has similarities with certain contracts, such as a contract for services or a contract of employment, which involve an obligation to act on behalf of another, and differences with others, such as a contract of sale or a bailment agreement, which involve the delivery of a thing. Agency agreements must also be distinguished from commission agreements and nominee agreements (convention de prête-nom). The commission agreement involves a commission agent acting in his own name on behalf of the principal , while the nominee agreement involves a person who commits to act on behalf of another, but in his own name.

463. Related contracts