What the partnership or agency clause will probably do is save the situation in which there is some uncertainty about the existence of a partnership relationship and an inconsistency. No authority. Another more valuable clause would be to expressly provide that the contract does not implicitly confer on one party the power or power to act on behalf of the other party. This is because the agency`s doctrine can be applied to “apparent authority.” According to this doctrine, a person is related to the actions of another person, his agent, if, after becoming aware of these acts as an (apparent) principal, he has behaved in a tolerant manner or must be presumed to have (tacitly) accepted the consequences of such acts (by his apparent agent). An argument supporting contrary intentions is reflected in the following sentence of a clause relating to “independent contractors”. However, since such a provision is not addressed to independent third parties who rely on the actions of the trustee, its effectiveness is limited to the internal relationship between the “apparent principal” and his “representative”: here are some of the consequences of the right of partnership: independent contractors. The parties are independent contractors. Nothing in this Agreement shall be considered a partnership or joint venture between the Parties, nor shall it represent any Party as a representative of the other Party for any purpose. The purpose of the clause is to avoid the consequences of an unwanted legal relationship. For example, whether a contract, obligation or “legislative act” would result in a certain degree of dependency, partnership or joint venture; in common law countries, such circumstances can create an undesirable legal form with unwanted obligations (financial or fiscal). This imposes on the agent important “duty of loyalty”, such as the obligation to disclose all conflicts of interest and the obligation to subordinate the agent`s own interests to the benefit of the interests of the other party. However, a contractual contract for the existence of such a relationship or fact should not be ineffective for the legal effect of examining at the same time whether the undesirable relationship is realistic. This Agreement does not create or imply any partnership, joint venture, agency, trust relationship or other relationship between the parties, except for the rights and obligations expressly set forth in this Agreement.
Neither party may give itself the power or claim to make commitments on behalf of the other party. Neither party is entitled to act, bind or declare that it has such power for the other party. For legal advice, contact a lawyer from this firm at email@example.com or +44 20 7036 9282. Partnership and agency clauses (or “no Agency Clauses” in contract law) deny the existence of a partnership or agency between the parties instead of allowing it. Although there are other reasons, two or more companies that operate in a joint venture and do not intend to be a partnership can take positive steps to prevent them from being legally classified as partnerships. If companies in joint ventures and corporate and corporate partnership agreements want to make it clear that they don`t want to create a legal partnership or agency, you`ll see contractual terms like this: it doesn`t mean that a court can`t decide that a court can`t decide that a partnership wasn`t established by the behavior of the parties simply because you have a partnership clause in a contract. A partnership or agency clause enshrines this intention in the contract: what the parties intend to do. . . .