An entrustment contract refers to a contract in which the trustee handles the entrusted affairs for the principal, and the principal pays or does not pay the agreed remuneration. What are the legal risks in the entrustment contract? How to guard against these risks? Next, Bian Xiao will give you a detailed introduction.
1. The trustee suffered losses when handling the entrusted affairs.
Legal risk: if the trustee suffers losses due to reasons not attributable to him when handling the entrusted affairs, the principal shall compensate the trustee for the losses. With the consent of the trustee, the trustor may entrust a third person other than the trustee to handle the entrusted affairs, and if losses are caused to the trustee, the trustee may demand compensation from the trustor.
Legal risk prevention measures: when entrusting the trustee to handle the entrusted affairs, the client should fully understand the possible damage to the trustee caused by handling the entrusted affairs, specify the measures to prevent these risks, and inform the trustee of the risks and preventive measures to ensure that handling the entrusted affairs will not bring harm to the trustee.
2. Two or more trustees handle the entrusted affairs together.
Legal risk: two or more trustees handle entrusted affairs at the same time, which may harm the interests of the principal, and the principal may require the trustee to bear joint and several liabilities; If more than two trustees handle the entrusted affairs at the same time, which damages the interests of the trustor, there may be more than one trustee who is not at fault, but is liable based on the provisions of joint and several liability.
Legal risk prevention: two or more principals can agree on the way to handle entrusted affairs and their responsibilities before handling entrusted affairs.
Third, terminate the entrustment contract.
Legal risk: The principal or the trustee may terminate the entrustment contract at any time. If the termination of the entrustment contract causes losses to the other party, it shall compensate for the losses except for reasons not attributable to the parties.
Legal risk prevention measures: the client and the entrusted personnel can predict in advance various factors affecting the entrusted transaction and predict the influence degree of various factors. On this basis, they can decide whether to handle the entrusted affairs and try their best to avoid the termination of the entrusted contract. If the entrustment contract must be terminated due to unforeseen circumstances, they should try their best to avoid and reduce the losses caused to the other party by the termination of the entrustment contract.
4. The principal or trustee dies, loses capacity for civil conduct or goes bankrupt.
Legal risk: the termination of the entrustment contract may harm the interests of the principal due to the death, incapacity or bankruptcy of the principal; Termination of the entrustment contract due to the death, incapacity or bankruptcy of the trustee may harm the interests of the principal.
Legal risk prevention measures: if the termination of the entrustment contract may harm the interests of the principal due to the death, incapacity or bankruptcy of the principal, the trustee shall continue to handle the entrusted affairs before the heir, legal agent or liquidation organization of the principal undertakes the entrusted affairs; The successor, legal representative or liquidation organization of the trustee shall promptly notify the client. If the termination of the entrustment contract will harm the interests of the client, the successor, legal representative or liquidation organization of the trustee shall take necessary measures before the client completes the aftermath.
The above are the possible legal risks in the entrustment contract, and the parties should know about them, try to avoid the risks and safeguard their own interests. If you want to know other related contents, please visit official website for consultation, and we will have a professional lawyer to answer your questions in detail.