If you. B Asking an agent to sign a contract on behalf of your company and you have not read the contract first, you remain responsible for all contractual terms. The client approves the officer`s actions and therefore bears the last responsibility. The agency agreement between a client and the agent must always be written in writing, with clear commercial terms, with explicit language limiting the responsibility of the client, when the representative does something that has not been authorized. This protects you personally and professionally. The Commercial Agents Regulation requires agents to act “in good faith” in the performance of their duties (Reg. 3); Contractors are required to act “with dedication and good faith” in their “relationships” with their sales agents (Reg 4). While there is no legal definition of this obligation to act “with dedication and good faith,” it has been proposed that it require contractors and agents to act “with honesty, openness and respect for the interests of the other party of the transaction.” Two “normative principles”  contribute to the realization of this standard of behaviour: Agency law is an area of commercial law that deals with a number of contractual, quasi-contractual and extra-contractual trust relationships involving a person, known as an agent, who is empowered to act on behalf of another (so-called client) to establish legal relations with a third party.  In short, it can be described as the same relationship between a client and an agent, with the client explicitly or implicitly authorizing the agent to work under their control and on their behalf. The agent is therefore obliged to negotiate on behalf of the client or to engage him and third parties in a contractual relationship.
This branch separates and regulates the relationship between the Agency: the Agency is defined as a relationship that involves the authority or ability of a person (agent) to establish or make legal relationships between another person (main person) and a third party (third party). If the nature of the relationship conflicts, the courts will consider the actual relationship and not what any agreement says. In some cases where a reseller agreement has stated that the relationship is not that of the client and the agent, the court found that the conduct of the parties binds the wholesaler, regardless of what the dealer`s agreement says. In Watteau v Fenwick, Lord Coleridge CJ on Queen`s Bench accepted Wills J.`s opinion that a third party could personally incur liability for a sponsor he did not know about while selling cigars to an agent acting outside his authority.