There is no specific definition of the agency agreement in the Commercial Law and Civil Law of Iran. In order to design an agency relationship between a commercial entity, company or business actor and its agent, we need to refer to the general concepts that are accepted in the practice and custom of the Commercial Law.
In this light, an agent is considered as an independent natural or legal entity who is acting as businessman and is responsible for promoting, marketing, and negotiating contracts on behalf of the principal. The agent operates based on the terms established in an agency contract, which is generally based on the rules of independency of the parties and trust.
The agency agreements are mainly conducted under Article 10 of the Civil Code of Iran that grants the freedom to parties to agree on the terms of the cooperation as far as it would not be against the laws. The agency agreements normally are divided into exclusive and non-exclusive agreements based on the parties’ agreement.