How is agency defined in Iranian law?

It covers a broad field of representation. Essentially, agency is regarded as a legal relationship in which one person (the agent) represents another (the principal) and is authorized to act on his behalf. According to Article 656 of the Iranian Civil Code, “Agency is a contract whereby one of the two parties appoints the other party as his representative to perform something.”

BROKERS, COMMISSION AGENTS, and COMMERCIAL DEPUTIES are the major types of representation in the area of trade agency which have been specified in the Iranian Commercial Code.

In which ways is an agency created?

There are several methods of creating an agency, express appointment, implication, ratification, etc. Article 658 of the Civil Code stipulates that agency is affected by any word or act which is indicative of representation. Therefore, an agency may be created by writing either under or without seal, or verbally. As for ratification, an agency is created when the principal’s assent is given either to an act done by someone who had no previous authority to act, or to an act that exceeded the prior authority granted to an agent.

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