All businesses will have to use contracts to govern their relationships with their contracting parties. They are essential as they are legally enforceable, meaning parties can uphold the agreements in court. However, they are only enforceable if they meet all the elements of a legally binding contract. If you are a migration agent, you will likely need to use client agreements, a type of contract. This article will explain what a client agreement is and some key terms to include.
What is a Client Agreement?
A client agreement is a type of contract that is entered into between a client and a business. In this case, your client may wish to achieve residency or citizenship in New Zealand. It outlines the relationship between yourself and the client and includes the rights and obligations of both parties.
Terms of a Binding Contract
Several elements must be satisfied before a contract can be considered legally binding. All of these elements must be present, and there can be no uncertainty as to whether an element is included or not.
| Term | Explanation |
| Offer | One party must convey an offer to the other party that they wish to contract on certain terms. This must be communicated so that the other party can receive the offer. |
| Acceptance | The party receiving the offer must accept it in the same circumstances the contract prescribes. Any deviation in the acceptance method may invalidate the contract. The acceptance must also be before the expiry date of the offer. An exception to this is the postal acceptance rule. This states that the acceptance is unequivocal as long as it was posted before the expiry date. |
| Consideration | Another element that must be satisfied is consideration. Consideration means that both parties must receive something due to the contract. It can either be a benefit to the other party or a detriment to you. Consideration must also be sufficient, meaning it must match or sufficiently match the value of the contract. |
| Intention | Both parties must also intend for the contract to be binding. If one party does not believe the agreement is binding, the contract will not be considered binding. |
| Certainty | The terms of the contract must also be certain. This means that there cannot be any ambiguity in the contract. If a term is ambiguous, the courts can invalidate the whole contract or that particular clause. |
Key Clauses
Scope of Services
You should include a clause that outlines your scope of services. This clause will detail what services the migration agent offers and what is expected of them. It may also contain any add-on services that the customer may wish to utilise.
Confidentiality
An important clause to include in your client agreement is a confidentiality clause. This is especially important as you will be dealing with large amounts of sensitive information as a migration agent.
Liability
A liability clause will outline any liability issues you or your client may face. For example, you might want to include in your liability clause that there is no guarantee that their application will be approved, as these decisions will lie with Immigration New Zealand.
You should also ensure that there is no migrant exploitation occurring in your workplace.
Termination
Another essential clause to include in your client agreement is a termination clause. A termination clause outlines how you or your client can end the agreement. Usually, termination clauses outline that either party must give notice before termination. Again, this is to mitigate losses for both parties.
To protect your business, ensure supplier contracts meet your business’ needs. Our free Commercial Contracts Checklist will help.
Key Takeaways
Contracts are an essential tool when entering business arrangements with other parties. They are used because they are legally enforceable, meaning both parties are protected if there is a dispute. A court can uphold the terms of the contract and declare if any of its terms are unenforceable or if the whole contract is enforceable. A contract is only enforceable if it contains all the elements of a binding contract. As a migration agent, you will likely enter into client contracts. These are called client agreements and will usually be the same for all your clients, albeit with slight variations. Your contract must contain key terms so that you are protected. These key terms include the scope of services, confidentiality, liability and termination clauses.
If you need help with client agreements for your migration business, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Frequently Asked Questions
No, as the decision is out of your hands, you can only provide advice. There is no onus on you to provide a guarantee.
This is a breach of contract and could result in damages for harm having to be paid.
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