Commercial Agencies

A relationship between one individual or legal entity (the agent) who represents, acts on behalf of, and binds another individual or legal entity (the principal) in accordance with the principal's request or instructions. In some countries, the role of commercial agencies is more narrowly defined as a relationship created only by a written contract or power of attorney, entered into by a principal and a person who is designated to act for the principal within the limits of the written contract or the attribution of the power of attorney. In international trade, relationships between agents and their clients (principals) are regulated through a Model of International Commercial Agency Contract. See agent; distributor; sales representative.