Agency In Position Of Sale Contract

Abstract

According to "contracts are subordinate to intents" rule, a contract is subordinate to actual intent of parties. Therefore, if two parties conclude a contract, but their intent is about another contract, a legal act is based on what they have intended in spite of choosing another title for it. One of the common issues raised frequently in case law is use of proxy as a cover for assigning ownership. This occurs for many reasons. This legal act is a sale contract along with agency. However, in some cases, this is only an agency contract which is a presumption of precedent sale contract. In some other cases, the legal act is void. This article aims to elucidate position, nature and effects of this legal act by examining reasons for doing it

Keywords

• agency
• contract of sale
• divestment of right
• hidden contract
• obligation to assign ownership