Commission contract is an agreement by which the first party (the commission) on behalf of the principal (the second party) undertakes to perform for remuneration one or more transactions at the expense of the principal, but in their own name.
legislation allows on the basis of commission agreement to enter into various types of transactions such as supply contracts.It may be multilateral deal aimed at creating obligations which are performed without the participation of the principal, but the result of their commission can be transferred to the person.
Treaty Commission Civil Code provides the following responsibilities of the commission.This party undertakes to fulfill the commitment order for the most favorable terms for the client in accordance with its requirements and instructions.
commissioner shall also perform the duties and exercise the rights that flow from transactions with third parties entered into pursuant to the contract.This party is not liable for failure to perform the concluded by the principal of the transaction by third parties, but it must be reported immediately to the principal if the transaction is not executed.In addition, the commission is obliged to collect all the evidence and at the request of the principal to execute the transfer of rights to the transaction, respecting the rules of the assignment.
When you order the commissioner provides a report to the principal and to give him all that had been received.Commission contract may provide for a period during which cash received or commercial values should be listed (transferred) to the principal and assign to them the right to access to documents of the commission to execute the contract.When determining the period of the report and attached documents should be guided by legal regulations governing accounting and taxation.
Under the contract the commission agent shall be entitled to deduct from any amounts that were received by the principal, the money owed to him for the fulfillment of commitments.
Treaty Commission under the simplified tax system provides for the duties of the principal.He must pay a fee to the commission under the agreement, and when he vouched for the performance of third-party transaction (del credere), to pay an additional bonus in the manner and amount established in the contract.
del credere essence lies in the fact that under the contract the commission agent becomes surety person with whom on behalf of the principal is an agreement.In case of failure of the deal by a third party will be responsible commissioner.If the breach of contract due to the fault of the principal, he shall compensate the commission all costs incurred and to pay interest on the commission.
also the responsibility of the principal part of compensation disbursed by the commission on the execution of orders amounts.If clear criteria for separation costs associated with the sale are not available, it is advisable to register them clearly in the contract.
shall be obliged to accept the performance of the agreement, namely to receive commission from everything that was done, inspect the purchased property, and notify him about the shortcomings detected in the resulting property.
Treaty obliges the Commission in the presence of the principal objections to report them to the commission within one month of receipt of the report, if the parties do not specify another term in the agreement.
main feature that contains the document is that the commission agent for the transaction with a third party at the same time acquire the rights and duties - even with the participation of the principal in a direct relationship with a third party.
