Question 1

What is an agency agreement under Canadian law?

Accepted Answer

An agency agreement establishes a legal relationship where one party (the agent) acts on behalf of another (the principal). The agent owes fiduciary duties including loyalty, disclosure, and accounting.

Question 2

Does the agent need to collect GST/HST?

Accepted Answer

If the agent's services exceed $30,000 in annual revenue, they must register for GST/HST. Commission payments to agents are generally subject to GST/HST.

Question 3

What fiduciary duties does a Canadian agent owe?

Accepted Answer

Under Canadian common law, an agent owes duties of loyalty, obedience, disclosure, confidentiality, accounting, and care to the principal.

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