Agency agreement

Agreement under which an agent undertakes to broker transactions for one or more principals (brokering agent) or to enter into transactions on their behalf and for their account (transacting agent). If the agent’s work leads to the conclusion of a transaction between his or her principal and a customer, he or she has a claim to a commission. The agency agreement is dealt with in Arts. 418a et seq. of the Code of Obligations (Obligationenrecht, OR). For insurance agents, the Insurance Policies Act (Versicherungsvertragsgesetz) also applies.