Article 1005. Agency agreement.

1. Under an agency agreement, one party (agent) undertakes to perform, on remuneration, on behalf of the other party (principal) legal and other actions on its own behalf, but at the expense of the principal or on behalf and at the expense of the principal. Under a transaction made by a third party agent in his own name and at the expense of the principal, the agent acquires the rights and becomes obliged, even if the principal is named in the transaction or has entered into a direct relationship with the third party to execute the transaction. In a transaction concluded by an agent with a third person on behalf of and at the expense of the principal, the principal and obligations arise directly from the principal. 2. In cases where the agency agreement, concluded in writing, provides for the general authority of the agent to make transactions on behalf of the principal, the latter in relations with third parties may not refer to the lack of proper authority of the agent, unless he proves that the third party knew or should have known about the limiting powers of the agent. 3. An agency agreement may be concluded for a fixed term or without specifying its validity period. 4. The law may provide for the features of certain types of agency agreement.

<< Article 1004 TKRF Back to table of contents Article 1006 TKRF >>

References to other articles of chapter 52. Agency services:
Article 1006. Agency fees.
Article 1007. Restrictions by the agency contract of the rights of the principal and the agent.
Article 1008. Agent Reports.
Article 1009. Sub-agent agreement.
Article 1010. Termination of the agency contract.
Article 1011. Application to agency relations of the rules on contracts of commission and commission.