{"id":771,"date":"2020-12-07T11:06:05","date_gmt":"2020-12-07T11:06:05","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=771"},"modified":"2021-02-23T18:23:51","modified_gmt":"2021-02-23T05:23:51","slug":"agency-relationship-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/property-and-leasing\/agency-relationship-new-zealand\/","title":{"rendered":"What Is an Agency Relationship in New Zealand?"},"content":{"rendered":"\n

As you operate and maintain your business, you are going to engage in a lot of contractual relationships along the way. One such relationship that you will likely encounter is the agency relationship. This is a kind of contractual relationship that arises when someone is acting as your agent. Some industries make heavy use of agencies, and you may hire or use agents yourself. As with any legal relationship, each party has rights and obligations attached to their role in said relationship. This article will explain the nature of an agency relationship, outline some of these obligations, and provide some examples where you may encounter an agency relationship.<\/span><\/p>\n\n\n\n

What Is an Agency Relationship?<\/span><\/h2>\n\n\n\n

An agency relationship describes the scenario where someone (the agent) has the authority to act on behalf of and affect the legal relations of another person (the principal). The concept itself is broad and simple, but how it plays out commercially can vary immensely. <\/span><\/p>\n\n\n\n

Agents can enter into contracts on behalf of the principal and make financial decisions for the principal according to context. You are bound by the contracts they sign for you and the decisions they make. <\/span><\/p>\n\n\n\n

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For example, suppose you are negotiating a deal with another company, and you personally are unable to attend the negotiations. In that case, you can nominate someone else to act as your agent and make decisions for you.<\/span><\/p>\n<\/div>\n\n\n\n

This is because you, the principal, give the agent the express authority to act as you would. There is an element of trust to this relationship, so you must pick someone you can trust and rely on to be an agent for you. If your agent acts outside of the authority you specified for them, you may be able to make a claim against them if you suffered any losses. However, this is very context-dependent. In some cases, you can approve an unauthorised act if your agent does something different than what you agreed on.<\/span><\/p>\n\n\n\n

Agency relationships can last for a specific period, and they will finish on the end date you agreed upon. If it is ongoing, you can end the relationship if both of you agree to it. You can also revoke your authority, and they renounce their access to your authority. In this case, whichever side that did not leave the contract can claim for a breach of contract.<\/span><\/p>\n\n\n\n

Agent\u2019s Duties<\/span><\/h2>\n\n\n\n

An agent\u2019s duties are to:<\/span><\/p>\n\n\n\n