The Company and the Agent want to enter into an agreement under which the agent will market and sell the product on the terms and conditions. First, trade agents and contracting entities, who express honesty and openness, must cooperate in accordance with their agreement. Behavioural behaviour requires that each party take proactive steps to help the other party implement its good business, rather than abstaining solely from obstructive behaviour. However, the question of whether a party acted in good faith cannot be determined on the basis of a moral or metaphysical notion of cooperation; this assessment must be based on an objective assessment of the actual corporate agency relationship. As a result, the intensity of the necessary cooperation will vary depending on the contractual conditions and relevant business practices. There is a clear authority (also called “alleged authority”) where the words or behaviour of the client lead a sensible person into the position of the third party to believe that the agent is entitled to act, even if the client and the alleged agent have never spoken of such a relationship. For example, when a person appoints a person to a position that involves agency-type powers, those who are aware of the appointment have the right to consider that there is clearly the power to do things that are normally assigned to such a position. If a client gives the impression that an agent is authorized but there is no real power, third parties are protected as long as they have acted reasonably. It is sometimes an “agency by Estoppel” or a “doctrine of supporting it”, which prevents the client from refusing to grant powers when third parties have changed their position to their detriment based on the representations presented. [5] An agent owes a number of tasks to the client. This includes: When an agent enters into a business on behalf of an unidentified client, the agent is a party to the contract. (An unidentified principle is present if the third party knows that there is a principle, but that the identity of the principle is not known.) A third party may rely in good faith on the representation of a person who claims to be an agent for another person.

It is not always cost-effective to check whether a person presented as entitled to act for another does have such power. If it is subsequently established that the alleged agent acted without the requisite authority, the agent is generally held responsible. The Commercial Agents Regulations require officers to act “with dedication and good faith” in the performance of their duties (Reg.