Document background
The Limited Agency Agreement is a crucial document for businesses operating in or expanding into the Swiss market through commercial representatives. This agreement type is particularly relevant when a company (principal) wishes to appoint an agent with specific, restricted authority to act on its behalf, while maintaining clear control over the scope of representation. The document, governed by Swiss law, encompasses essential elements required under the Swiss Code of Obligations, including precise definitions of authority limits, territorial restrictions, commission structures, and compliance requirements. It's commonly used when companies need a presence in specific markets or sectors but want to maintain strict control over their representative's activities. The Limited Agency Agreement is especially valuable for international businesses navigating Swiss commercial relationships, as it provides a clear framework for restricted agency operations while ensuring compliance with local legal requirements.
