Agency Contract in Ghana

The Ghanaian legal system is of a mixed nature, as on the one hand it is attributable to the common law system of prevailing British influence, on the other hand it is integrated by local customs. Custom is in fact expressly mentioned by the Ghanaian Constitution as a source of legislation applicable to certain communities in which it has established itself in a deeply rooted way. In addition, it collects within it the guidelines and rulings of the Ghanaian Supreme Court of Justice. In fact, in the Ghanaian legal system, the judicial "precedents" enjoy a significant degree of binding force.

The two main rules governing commercial relations are the "Contract Act of 1960 (Act 25)" and the "Companies Act of 1963", however none of the aforementioned rules provide for a specific discipline of the agency institution. This is due to the fact that the first Europeans who established commercial relations with Ghana in the nineteenth century cultivated their economic interests through other forms of contract.
Nonetheless, the historical legacy has not affected the structure of modern commercial relations, where the preferred channels of business and access to the Ghanaian market for foreign operators are mainly represented by the agency or distribution contract with reference to both forms of retail sales (the so-called "retail"), and wholesale sales. The widespread practice in the country denotes how foreign economic operators cooperate indiscriminately both with state bodies and with private entities.

With specific reference to the agency contract in Ghana, it should be noted that this bond consists of an agreement by which one party ("the agent") undertakes to act on behalf of another party ("the principal"). According to Ghanaian law, the essential prerequisite of the agency contract is voluntariness, namely that both parties must be consenting and be aware, this in light of the fact that the legal effects of the agent's activity are produced in the legal sphere of the principal.

It should be noted that the Ghanaian legal system is extremely protectionist towards the figure of the agent, considering that this role can only be assumed by Ghanaian citizens or by companies with full Ghanaian participation.
The agency contact requires the written form, although it is not the essential requirement. However, if this contract is drawn up in writing, the obligation to register the agent's name in an appropriate register kept by the Ministry of Economy arises at the same time. Depending on the type of activity or goods covered by the contract, the activity can be carried out by a single agent operating on the entire Ghanaian territory, or by multiple entities to which different territories are consequently assigned with respect to which they must operate.
The agent's remuneration is determined by a commission calculated with respect to the turnover produced.
The peculiarity of the agent - principal relationship must be recognized in the particular form of control exercised by one party over the other, whereby the former agrees to act under the direction of the latter.
The parties can agree on a term within which the contractual relationship ends. However, in order for an early withdrawal to take place, the express consent of the agent is required; otherwise, he is entitled to compensation for any damage resulting from the termination of the contractual relationship.
The circumstances that determine the termination of the agency agreement include death, the inability to act upon the principal and the bankruptcy of the same.