The binding and main purpose of a contract is that both parties assume legal obligations by signing the agreement.
Every agent must realize that despite the clauses of the contract, some duties are inherently understood and undocumented.
To fulfill the contract, the agent must act in the company’s best interests. While it is not the agent’s responsibility to ensure that every transaction concludes with positive results for the company, the agent diligently works on the company’s behalf in an effort to meet its desired outcome.
When delegated by the company, the agent must negotiate and conclude transactions when appropriate. An agent, unlike a regular employee, does not require regular instructions and supervision from management. Instead, an agent has more freedom, and must act on the company’s behalf, making decisions at one’s discretion. In this case, an agent acts more independently and within one’s knowledge base to aid the company’s end goal.
The agent is responsible for communicating any necessary information to the company regarding the business. Based on the information’s value, communication between an agent and the company may change the business strategy altogether. The agent provides relevant information to the company, thus aiding in decision-making and business strategies.
The agent must respect and follow the instructions of company. Even though the agent has freedom to execute the assignment, the agent works for the company and must follow its instructions.
Based on the agent’s experience, the agent may identify imminent danger to both the project and company if the company’s instructions are strictly followed. While the agent cannot disregard the company’s guidelines, the agent must communicate the identified concerns to the company, allowing the company to make an informed decision.
If the agent fails to communicate guideline concerns to the company, the agent could be held liable based on one’s experience or expertise. The agent is not only an employee that aids the company in economic expansion, but the agent it is also hired for one’s task-specific expertise. In short, an agent’s professional opinion is an integral part of one’s expected efforts to support the company.
Reference: International Shipping > Terminating an Agent in Foreign Countries