Provision International Authority

Published by Hendrikje Herrmann

Excerpt

The validity and effect of an authority are not subject to the law of the contract concluded by the authorised person but to be determined autonomously in case a dispute arises out of a transaction in which an agent was involved. This generally results in uncertainties for those who conclude contracts with an authorised person e.g. a commercial agent and respectively those who authorise an agent to conclude contracts. The autonomous determination of the authority thus constitutes a risk for the international trade. Therefore, the German legislator found it necessary to codify the existing case law and principles as established by the scholars in terms of the law applicable to international authorities…