Difference between agency agreement and contracting agreement


Both the agency and the contracting agreements aim at certain services to be peformed by the agent/contractor to the principal/client.

An agency contract is made between the principal and the agent, under which the latter agrees to represent the principal in any matters or perform certain duties in advancement of the interest of the principal.

A contract whereby the contractor agrees to build, repair, assemble or create a product required by the client.

The difference between the agency contract and the contracting agreement is basic duty that the party obligated to perform. An agent owes a duty of care in advancing the interest of the principal. In this case, the agent is not responsible if the purpose of the action is not reached. In contrast ot agency, the contractors has to bring about a result by building, repairing, assembling or designing something. The contractor’s duty is only peformed when the desired result is brought about