Agency agreements are an essential part of conducting business in Thailand. In short, it is a legal agreement between two parties, where one party (the principal) authorizes the other (the agent) to act on their behalf.
An agency agreement can take various forms, depending on the nature of the relationship between the principal and the agent. Typically, the agreement outlines the duties and responsibilities of the agent, compensation, and other important terms and conditions.
In Thailand, agency agreements are regulated by the Civil and Commercial Code. The Code recognizes two types of agency relationships: general agency and special agency.
General agency is where the principal authorizes the agent to act on their behalf in all matters relating to a particular business or trade. Under this agreement, the agent has the power to enter into contracts, make purchases, and run the business as if they were the actual owner of the business.
On the other hand, special agency is where the agent is authorized to perform specific tasks or functions on behalf of the principal. This type of agency agreement is commonly used in Thailand for the appointment of sales agents, distributors, and other similar roles.
The agency agreement in Thailand should be in writing and signed by both parties. It should also contain specific details, including the scope of the agent`s authority, the duration of the agreement, and the compensation payable to the agent.
It is essential to ensure that the agency agreement in Thailand complies with the law, and all the necessary legal formalities are followed. Any violation of the law may result in legal action against the parties involved.
In conclusion, agency agreements are crucial in conducting business in Thailand, and it is essential to ensure that all legal formalities are complied with. As a professional, it is important to use relevant keywords, such as “agency agreement Thailand,” in the article to improve its ranking in search engine results.