Contract of mandate

Published byDocMuse

For when you instruct someone to act on your behalf — to represent you before an institution, to manage a property, to negotiate, to receive payments. It differs from a contract for work and from a service agreement in that the agent acts for your account and owes you an account of it. The contract settles the scope, the reporting and the expenses; for acting towards third parties a separate power of attorney is also needed.

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Common questions

How does it differ from a service agreement?

An agent acts in your name and for your account and owes you an account of it. Under a service agreement the provider works for you but does not represent you. The difference decides who bears the consequences of what is concluded with a third party.

Is the contract enough for someone to represent me before an institution?

No. The contract governs the relationship between the two of you; to act towards third parties a power of attorney is also needed. That is why the contract expressly provides for the principal to supply the necessary authorities.

Can the agent pass the work to someone else?

Only with your written consent. A mandate is performed personally, because it rests on trust in the particular person — otherwise substitution defeats your choice.

What does it mean that the agent owes an account?

That they have to hand over to you everything received in the course of performing, and account for what they did and at what cost. That is the central duty under this kind of contract, and the reason the manner of reporting is agreed.