Another definition of an agency agreement is the « relationship between the Authority or a person`s ability to create or influence legal relationships between another person and a third party. » It sounds more professional, but it means the same thing. In general, an agency is created as follows: Agency agreements can be concluded if you ask a seller, accountant, lawyer or other third party to make transactions on your behalf. There are three types of financial or commercial risks essential to the definition of an agency agreement for the purposes of Article 101, paragraph 1. First, there are contract-specific risks that are directly related to contracts entered into and/or negotiated by the representative on behalf of the client, such as equity financing.B. Second, there are the risks associated with market-related investments. These are investments that are necessary specifically for the type of activity for which the contracting authority has appointed the agent, that is, which are necessary to enable the agent to enter into and/or negotiate this type of contract. Such investments are usually sewn, which means that the investment cannot be used or sold for other activities, except with a significant loss, after leaving this field of activity. Third, there are the risks associated with other activities in the same product market, to the extent that the contracting entity requires the agent to engage in such activities, not as an agent on behalf of the client, but for his or her own risk. This list is not exhaustive.
However, if the representative is responsible for one or more of the above risks or costs, the agreement between the representative and the client is not referred to as an agency agreement. The issue of risk should be assessed on a case-by-case basis and not on the basis of the economic reality of the situation and not on the legal form. For practical reasons, risk analysis can begin with the assessment of contract-specific risks. If the agent presents specific risks to the contract, it is sufficient to conclude that the agent is an independent distributor. On the contrary, if the representative does not take specific risks to the contract, it will be necessary to continue the analysis by assessing the risks associated with market-specific investments.