Introduction:
In business and law, agency relationships play an important role in connecting parties and ensuring the smooth execution of contracts. Different forms of agency, such as explicit indirect agency, implicit indirect agency and agency contract, have unique meanings and functions in different situations. By analyzing these agency relationships in depth, we can better understand their connotation and value in practical applications.

Indirect agency by name
Articles of law
Article 925 of the Civil Code [Right of Client to Intervene]

"A contract concluded by the agent in its own name and within the scope of authorization of the principal with a third party, where the third party was aware of the agency relationship between the agent and the principal at the time of conclusion of the contract, the contract directly binds the principal and the third party; Except where there is conclusive evidence that the contract binds only the trustee and third parties."

Give an example
Suppose Company A needs to purchase a large amount of raw materials, but does not want to disclose its purchase requirements to avoid driving up the market price. Company A entrusts agent B to sign A raw material purchase contract with supplier C in the name of B. When the contract is concluded, supplier C knows that Company A is actually behind the operation. In this case, Agent B is the named indirect agent and Company A is the principal. In principle, the purchase contract directly binds A and C. B and C agree that the contract is bound only by both parties.

Undisclosed indirect representation
Articles of law
Article 926 of the Civil Code [Client's Right to Intervene and Third Party's right to choose]
"When the agent enters into a contract with a third party in its own name and the third party is unaware of the agency relationship between the agent and the principal, if the agent fails to perform its obligations to the principal due to a third party, the agent shall disclose the third party to the principal, and the principal may therefore exercise the rights of the agent with respect to the third party. However, the third party would not have concluded the contract if it had known the principal at the time it concluded the contract with the agent.

If the agent fails to perform its obligations to a third party due to reasons attributable to the principal, the agent shall disclose the principal to the third party, and the third party may therefore choose the agent or the principal as the counterpart to claim its rights, provided that the third party may not change the selected counterpart.

Where the principal exercises the rights of the agent against the third party, the third party may assert to the principal its defense against the agent. Where a third party selects the principal as its counterpart, the principal may assert to the third party its defence against the agent and the defence of the agent against the third party."

Give an example
Suppose Company A needs to purchase a large amount of raw materials, but does not want to disclose its purchase requirements to avoid driving up the market price. Company A entrusts agent B to sign A raw material purchase contract with supplier C in the name of B, and supplier C does not know that B is A's agent when the contract is concluded. In this case, Agent B is the implicit indirect agent and Company A is the principal. In principle, the purchase contract is only bound by B and C. But there are exceptions where A exercises the right to intervene or C exercises the option.

The application of indirect agents
Indirect representation provides an opportunity for parties who wish to conduct transactions while protecting their commercial privacy, such as art auctions, equity transactions, etc. In this relationship, the agent hides his identity during the transaction to protect the trade secrets of the agent and the principal. However, indirect agency is also accompanied by risks, such as the failure of the agent to fulfill his obligations may make it difficult for the principal to defend his rights. Therefore, in the contract of indirect agency, both parties need to clearly define their rights and responsibilities to ensure the effective performance of the contract. This agency model helps balance the rights and interests of all parties and facilitates the smooth progress of transactions, while reducing information leakage and legal risks.

Brokerage contract
Articles of law
Article 951 of the Civil Code
"A commission contract is a contract whereby the commission agent engages in trading activities on behalf of the principal in his own name and the principal pays remuneration."

Article 958 of the Civil Code
"Where a commission agent concludes a contract with a third party, the commission agent shall directly enjoy the rights and assume the obligations under the contract.
Where a third party fails to perform its obligations and causes damage to the principal, the commission agent shall be liable for compensation, unless otherwise agreed by the commission agent and the principal. "

Article 960 of the Civil Code [Refer to the provisions on the application of the Commission Contract]
"Where there is no provision in this Chapter, reference shall be made to the relevant provisions applicable to the entrustment contract."

Give an example

Suppose that A parts factory A entrusts A sales company B to sell products on A commission basis, B accepts the entrustment of A and sells products on behalf of A in its own name, and agrees that the commission price shall belong to A, and B only receives the commission fee. In this relationship, A is the principal and B is the agent.

The application of brokerage contracts
Brokerage contracts are widely used in real estate, finance and trade to ensure that the rights and interests of the principal are properly protected. For example, in the financial field, securities asset management business is a new business developed by securities operating institutions on the basis of traditional business. It is a behavior in which the client hands over his securities assets to the securities company, and the securities company provides financial services for the client in his own name. This form of contract is crucial to ensure the responsibilities and obligations of professional agents and the rights of the client.

Triad comparison
There is a relatively high degree of distinction between named indirect agency and implicit indirect agency (collectively referred to as "indirect agency"), and the difficulty lies in the distinction and convergence between them and the bank contract. The three have many similarities: both trustees carry out activities in their own name, and both have internal and external contractual relationships. In particular, both are entrusted by the principal and engage in certain behaviors within the scope of the principal's authorization. But there are many differences:

First, whether it is necessary to have certain qualifications. A commission agent shall obtain a specific qualification to engage in a certain discipline act, and most of its operations need to be approved or registered by the relevant departments. There is no such qualification requirement for indirect agents.

Second, whether the client can have a legal relationship with the third party directly is different. In indirect agency, the principal can break through the relativity of the contract and claim the right directly to the third party. In a commission contract, the commission agent enters into a contract with a third party in his own name, and the commission agent directly enjoys the rights and performs the obligations of the contract.

Third, the nature of the right of intervention is different. In indirect agency, the right of intervention of the principal is a kind of forming right, which can directly have a legal relationship with the third party. The commission agent's right to intervene means that the commission agent himself can act as a buyer or seller and directly have a transaction relationship with the principal, but it is not a right to form.

In short, in practical application, according to the needs, understanding the characteristics and application fields of each agency relationship, choosing the appropriate agency relationship will help to make wise decisions in the complex business environment, and provide a strong guarantee for the effective performance of the contract and the protection of the rights and interests of both parties.