In addition, this contract is defined and regulated by the Agency Contracts Act. Over the years, the case law has defined and limited the agreement and resolved the most problematic issues. The most important issue is customer compensation, which is not mentioned in any of the cases of termination of an agency contract. An agreement gives the supplier of goods control over the distribution of these goods. Distributors cannot enter into contracts on behalf of suppliers. The legal relationship exists only between the supplier and the distributor. The distribution agreement defines the terms of the relationship between the supplier and the distributor, including the products marketed, the distribution sector, the exclusive sales objectives, the selling price and how the products are to be marketed. Agency agreements give officers much more power and responsibility. They are also generally much riskier for the principle. Agents can market a voucher or service on behalf of the customer. They may also enter into distribution and other contracts on behalf of the contracting entity, depending on the specific terms of the agency agreement and the nature of the goods or services. This is useful for companies that have a new product or service and want to increase market awareness and revenue in new territories.

Distributors have limited powers over agents. Distributors buy a product from the supplier and resell it to the end consumer. Distribution agreements can be used for a large number of products. They benefit suppliers because they will give them access to a wider market for their product. Distributors love them because it allows them to offer a product that sets them apart from competing companies or attracts more buyers to their business. They are often useful in situations where the supplier`s brand or product is established in the market. A company`s ability to grow rapidly with distributors remains an attraction for many business owners. For the supplier, distribution agreements present a limited financial risk and the possibility of testing the market in new territory. For the distributor, this may offer the possibility of incrementally selling an existing infrastructure cost. According to the above case law, the case law was called into question as to whether the ACA could be applied automatically by analogy with the distribution contract. But we can conclude with the verified rates that this compensation could not be applied automatically. Both teaching and case law have marked the agreements, so we have two very different treaties, since they (1) have different objectives and (2) different regulations.

Agency agreements allow one party (the agent) to act on behalf of another party (the client). Agents have a lot of power because they are able to make financial decisions for the client and they are able to enter into contracts with third parties that legally bind the client. Agency agreements define the nature of the agency`s relationship and constitute the extent of an agent`s power to act on behalf of the adjudicating entity. Because agents have so much power, they also have a lot of legal responsibilities in carrying out their duties. This type of relationship is called the fiduciary relationship. For example, officers must always act in the best interests of the client and avoid conflicts of interest.