9 most common types of business agents

Contractual relationships are a key part of business. International business lawyers should be skilled at handling such relationships . 

As an international business lawyer, you have to be aware of the various contractual authorities. You also have to be aware of the concept of various types of contractual agencies.  

Types of Agency/ Contractual Authority 

Principal-Agent relationship, in international business contracts, can be expressed in written terms or implied. There can also be legally sound apparent authority given by a principal to a third party. To become a cutting-edge international business lawyer of tomorrow, you need to have an in-depth understanding and global perspective on issues such as these.

The following chart explains the various types of contractual authorities. The three basic authorities for every contract worldwide are: Principal, Agent and the Third Party.  

All three of these authorities are key in the structure of contractual relationships. Like, for businesses, the concept of contractual agencies is important worldwide.  

9 MOST COMMON TYPES OF BUSINESS AGENTS AROUND THE WORLD 

Sl. No.	Agent	Description
1.	Broker	Receives a commission to make contracts with third parties on behalf of a principal
2.	Business agent	Has general power involving the exercise of judgment and discretion, such as a manager or officer
3.	Factor	Receives and sells goods or property for a commission
4.	Forwarding agent	Receives and ships goods for a principal
5.	Independent contractor	Exercises independent judgment on the means used to accomplish the result demanded by principal
6.	Local agent	Acts as a representative to transact business within a specified area
7.	Ordinary agent	Acts under the direction and control of the principal, such as an employee
8.	Process agent	Authorized to accept legal service of process on behalf of the principal
9.	Registered agent	Authorized to accept legal service of process for a corporation in a particular jurisdiction

Suppose a business wants to open an offshore office in a foreign jurisdiction. 

For that, the company would need services from a host of agents – from local and registered ones to brokers, business agents and professional agents/ independent contractors to make it possible. 

For example, if, today, a Company wants to open an offshore office in Singapore and do business there, it needs to employ a resident Director and Company Secretary from Singapore! 

And who but business lawyers can advise companies on international agency relationships and design international agency-contracts with a legally sound and compliant foundation? 

With the right upskilling, you, too, can be a successful international business lawyer!

Check out our Youtube Channel to find out how you can hone your skills and shape-up your profile as an International Business Lawyer.  

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