An agency agreement is an agreement between a client (you, the owner of the goods) and a representative (the company that sells the goods on your behalf). As a result, large companies such as Apple will want to hire many resellers across Australia. Whichever label you choose, the law refers to either an “agent” or a “merchant.” Ultimately, it is our duty to determine what is expected, because there is a big difference between the two that inform about the type of agreement we are sparing (. B, for example, under the Consumer Protection Act, agents and traders have different obligations to the end consumer). The relationship between the seller and a representative consists of rights and obligations arising from agency law and the obligations defined in the contract. One of the drawbacks for a seller who indicates the agent is that the agent, regardless of the power actually granted by the agreement, implies the legal power to hire the seller as his principal. In other words, the agent is entitled to enter into contracts between the seller as a customer and other parties, and therefore the obligations that the seller must respect, whether the seller knows in advance or not. This does not mean, however, that you will not have any obligation to the dealer under the agreement. The distribution contract governs the dealer`s responsibilities and the conditions under which he can acquire the seller`s software. The reseller then enters into separate delivery contracts with its own customers (end consumers) with respect to the products or services that the seller is authorized to distribute to the dealer.
One of the main features of agency agreement distribution agreements is that a distributor is an independent organization that, in its own name, buys and resells accordingly from the seller as a client. Here, the seller has no direct relationship with the customer through the distribution contract, although the seller conceded the software to the customer directly through an end-user license agreement. Typically, an agency agreement is exclusive, which means that the client has only one agent. As explained above, this is different from a distributor agreement in which a wholesaler may have multiple resellers. Under an agency agreement, the client, whether he likes it or not, is bound by the actions of the representative when a representative enters into a contract with a third party.