Mandate contract (paid)

This mandate contract template is well-suited for various sectors, including consultancy, representation, business management, and other services that require the appointment of an agent to perform specific tasks on behalf of a principal in return for compensation. 

Clients have used this rmandate contract template for:

• Representation before authorities: an individual or business entity may utilize a mandate contract to authorize another person to act on their behalf before local authorities (e.g., submitting documents to municipal offices or obtaining permits). Depending on the specific activities involved, notarization or the use of a qualified electronic signature may be necessary.

• Property management: the principal may use this contract template to appoint a relative or friend to manage an apartment (renting it out, collecting rent, maintenance) while they are abroad. In such cases, other templates like lease agreements or property lending contracts may also be useful.

• Vehicle sale: the owner can empower another person through the mandate contract to sell a vehicle on their behalf, negotiate the price, sign the necessary documents, and fulfill other formalities with the relevant public authorities. Templates like a vehicle sale contract may also be useful.

• Consultancy and representation: you can use the mandate contract template to obtain specialized consultancy or assistance in various fields. In this context, business consultancy or collaboration agreement templates may be relevant.

• Real estate brokerage services: an individual wishing to sell or lease a property can use the mandate contract template to work with a real estate agency to manage the entire process (advertising, viewings, negotiations). Alternatively, a brokerage contract template can be utilized.

• Accounting services: A freelancer may enter into a mandate contract with an accounting firm to handle tax reporting and filing with the tax authorities (ANAF). Service provision contract or master service contract templates may also be used in such cases.

• Appointing a company director: the director of an LLC (SRL) can be appointed through a mandate contract or an employment contract. For appointing an administrator for an LLC, a customized director appointment contract template is also available. Read more about appointing corporate directors.

I am the principal. Am I required to pay a fee for the agent’s services?

A mandate contract may be established with or without a fee. According to the Civil Code, a mandate contract between two individuals for personal purposes is generally presumed to be gratuitous, while one concluded for carrying out a professional activity is presumed to be remunerated. This presumption stands unless the parties explicitly agree to a different arrangement.

Is a written form required to execute a mandate contract?

No, a written form is not strictly required for a mandate contract; however, it is advisable to prevent potential misunderstandings between the parties and to provide evidence in court if needed. Acceptance of the mandate may also be implied through the agent’s performance of the assigned tasks. Nevertheless, for specific legal acts (e.g., the sale of land), the law mandates compliance with certain formalities, such as notarization of the mandate contract.

Is notarization required for a mandate contract?

If the mandate involves carrying out a legal act that legally requires an authentic form (e.g., the sale of real estate), the mandate contract must also be notarized by a public notary. 

Furthermore, an authentic form may be necessary when using the mandate contract before public authorities.

What are the main obligations of the agent?

In fulfilling the mandate contract, the agent is required to: perform the assigned tasks with diligence and loyalty; keep the principal informed of the progress of activities; and return all documents and assets acquired during the mandate to the principal.

What are the main obligations of the principal?

In fulfilling the mandate contract, the principal must: provide the agent with the necessary resources to execute the mandate; reimburse the expenses incurred by the agent in the interest of the mandate; ray the agent’s fee as agreed in the contract.

How can a mandate contract be terminated?

The mandate contract can end in cases agreed upon by the parties or in general cases provided by law (e.g., termination due to non-performance). The mandate contract template provides for termination in cases such as: revocation by the principal, unilateral termiantion by the agent with prior notice, expiration of the contract term, force majeure, or mutual agreement.

I am the agent. Can I delegate the tasks established by the mandate contract to a third party?

The agent may delegate the tasks outlined in the contract to third parties only with the principal’s consent. However, in exceptional circumstances where delegation is essential for fulfilling the mandate, the agent may proceed without obtaining prior consent from the principal.

I am the agent. Am I liable for breaches committed by third parties I have engaged?

No, as long as you have performed your duties within the scope defined by the mandate contract, the responsibility for fulfilling the contracts you have arranged rests with the principal and the third parties who entered into those agreements.

When is it not advisable to use a mandate contract?

It is not recommended to use a mandate contract when a relationship of subordination between the parties is required (in which case an employment contract should be used) or in situations where there is a conflict of interest between the principal and the agent.