Cyprus - Andreas Neocleous & Co

CYP/4
INTERNATIONAL AGENCY AND DISTRIBUTION LAW
by and accountable for his acts as if he were an agent originally appointed by the
principal. The agent is responsible to the principal for the acts of the sub-agent,
and the sub-agent is responsible for his acts to the agent, but not to the principal
except in case of fraud or willful wrong. 2
Section 154 clearly states that where an agent appoints without authority a
person to act as a sub-agent, the agent is liable for his acts both to the principal
and to third persons. The principal is not represented by or liable for the acts of
the sub-agent, nor is the sub-agent liable to the principal. 3
Mercantile Agent
The definition of a mercantile agent can be found in section 2(1) of the Sale of
Goods Law, Law Number 10(I)/1994. He is the person who has in the
customary course of his business as such agent authority either to sell goods, or
consign goods for the purposes of sale, or to buy goods, or to raise money on the
security of goods. 4 The significance of the term 'mercantile agent' has been
greatly reduced nowadays and has become very scarce.
Canvassing Agent
A canvassing agent is a person who represents others, such as an estate agent or
an insurance agent, in order to introduce business. Strictly speaking, canvassing
agents are not agents in the legal sense but certain doctrines established by the
law of agency, especially those relating to the fiduciary obligations they owe to
the principal, are applicable.
Distributors and Franchises
Franchise holders and distributors of particular products are often referred to as
agents. Though it is possible that such persons are agents in the sense that their
obligation to their principal is that of an agent, even though they deal with the
outside world in their own name, such persons are regarded at common law as
purchasers for resale and agency principles are not strictly applicable.
Commercial Agent
A 'commercial agent' is defined by section 2 of the Commercial Agents Law as
amended as:
Every legal or natural person who, by his capacity as an independent
intermediary, has the permanent authority to negotiate on behalf of another
person, the principal, the sale or purchase of goods or negotiate and conclude
such actions in the name and on behalf of the principal.
2 Contract Law, Cap 149, ss 151–152.
3 Contract Law, Cap 149, s 153.
4 Sale of Goods Act, Cap 267.
(Release 2 – 2013)