Agents or representatives act as intermediaries in the conclusion of an agreement but do not enter into the agreement themselves. They sign on behalf of the company they represent, who is subsequently bound to perform the agreement.
Agents may act in their own names or explicitly use the name of the company they represent, but in both cases the company they represent is bound to the agreement as a result. This differs fundamentally from the reseller agreement, in which the reseller itself enters into the agreement with the client. As a consequence, the reseller itself is liable under the agreement.
Agents receive commission for their intermediary services. This may be a fixed fee, a percentage of the turnover or the price paid by the end client
An agency agreement is subject to further statutory regulations (such as the requirement to provide a monthly commission statement and the agent’s right to audit the accounts.)
If the agent carries out promotional activities and generates clients through online advertising, this is also referred to as an affiliate contract.
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