Department of Fair Trading Agency Agreement Fact Sheet

The Department of Fair Trading Agency Agreement Fact Sheet: What You Need to Know

If you`re considering entering into an agency agreement in Australia, it`s important to understand your rights and obligations under the law. The Department of Fair Trading has published a fact sheet that outlines the key information you need to know before signing any agreement.

Here are some of the most important points to keep in mind:

What is an agency agreement?

An agency agreement is a contract between a principal (the person or company that engages the agent) and an agent (the person or company that agrees to act for the principal). The agent is authorized to perform certain tasks on behalf of the principal, such as selling goods or services or providing advice.

What should be included in an agency agreement?

An agency agreement should clearly specify the scope of the agent`s authority, the duties and responsibilities of both parties, and the commission or other payment arrangements. It`s important to ensure that the agreement accurately reflects the understanding between the parties, and that any changes or amendments are agreed to in writing.

What are your rights as an agent?

Under the law, an agent is entitled to be paid in accordance with the terms of the agency agreement. If the principal breaches the agreement, the agent may be entitled to compensation or damages. An agent also has certain rights to terminate the agreement.

What are your obligations as an agent?

An agent has a duty to act in good faith and in the best interests of the principal. This includes ensuring that any advice or representations made to customers are accurate and not misleading. An agent must also comply with any legal or regulatory requirements that apply to the task they are performing.

What should you do if you have a dispute?

If you have a dispute with the principal, you should first try to resolve it directly with them. If this is not possible, you may be able to seek assistance from the Department of Fair Trading or other dispute resolution services. In some cases, legal action may be necessary.

In conclusion, if you are considering entering into an agency agreement, it`s important to take the time to understand your rights and obligations. The Department of Fair Trading`s fact sheet provides a helpful overview of the key information you need to know. By being informed and proactive, you can help ensure a successful and mutually beneficial relationship with your principal.