Agency contract in Ukraine


The agency relations in Ukraine are regulated by the Civil Code of Ukraine (clauses 1000 to 1010) and by some other Ukrainian bylaws.

Clause 1000 of the Civil Code of Ukraine provides that on the grounds of the agency contract one of the parties (the attorney) undertakes to make certain legal actions on behalf and for account of the other party (the principal). A deal concluded by the attorney creates, changes, terminates the civil rights and obligations of the principal.

The main difference of the agency contract from the commission contract in Ukraine is that on the grounds of the agent contract the attorney acts on behalf and for account of the principal and on the grounds of the commission contract the commission agent acts on his own behalf but also for account of the commission principal.

The agency contract can establish the exclusive right of the attorney to perform all the actions or a part of the same, which are provided by the agency contract. The agency contract can define terms, conditions of implementation of the principal's order and the territory for the same as well.

Most part of legal services in Ukraine is rendered on the grounds of the agency contract with an attorney at law or with a Ukrainian law firm.

Clause 1001 of the Civil Code of Ukraine provides that the agency contract can establish the term during which the attorney has the right to act for and on behalf of the principal.

It is essential that the attorney has the right for appropriate reward from the principal for representation of interests of the last. Amount of such reward is to be set in the agency contract, otherwise to be defined proceeding from the essential prices for the similar services.

Clause 1003 of the Civil Code of Ukraine provides that either the agency contract or the power of attorney issued on the grounds of such agency contract is to contain the exact description of the legal actions, which are to be performed by the attorney. Scope of such actions can include only the lawful, direct and practically executable actions. 

Clause 1004 of the Civil Code of Ukraine provides some frame requirements as concerning performance of the principal's orders. The named clause provides that the attorney has to act according to the content of instructions provided by the principal. The attorney can derogate from contents of the principal's instructions if this is required in the interests of the principal and the attorney had no a possibility to ask the principal about the same or had not received his answer within the reasonable period of time. In such a case the attorney has to inform the principal about such interrogation as fast as possible. Therewith the attorney can be given the right to interrogate from instructions of the principal without the preliminary asking of the principal. However the attorney anyway has to inform the principal about such interrogation within the reasonable period of time if otherwise is not provided by the agency contract.

Clause 1005 of the Civil Code of Ukraine provides that the attorney has to act for and on behalf of the principal personally. However the attorney has the right to transfer acting for and on behalf of the principal to the other person if such possibility is provided by the agency contract or if the same is required in order to protect interest of the principal on the best affords basis. Therewith the attorney has to inform the principal about the same immediately. However the principal has the right to decline such deputy attorney at any time.

According to clause 1006 of the Civil Code of Ukraine the attorney has the following obligations:

- to inform the principal on request of the same about the process of implementation of his order and instructions;

- to return to the principal the valid power of attorney after full implementation of appropriate agency contract or if the agency contract was terminated as well together with appropriate report about execution of orders and instructions of the principal together with confirming documents if this is required by the agency contract and the nature of the orders and instructions;

- to transfer everything acquired on the grounds of the agency contract to the principal immediately.

According to clause 1007 of the Civil Code of Ukraine the principal has the following obligations:

- to provide the attorney with appropriate power of attorney in order he could execute the legal actions provided by the agency contract;

- to provide the attorney with all the necessary required for fulfillment of appropriate orders and instructions of the principal;

- to recover all costs of the attorney related to implementation of orders and instructions of the principal;

- to accept from the attorney everything acquired by him on the grounds of the agency contract immediately;

- to reward the attorney in the proper way.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.

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