What is a mandate agreement and when to use it

A mandate agreement is a contract in which the mandatary undertakes to perform a task or act on behalf of the mandator, according to their instructions.
The mandatary may act in their own name or on behalf of the client, depending on the agreement. It is a relationship based on trust and responsibility.

Typical examples:

• representation in administrative or legal matters

• handling legal, accounting, or business tasks

• property or asset management

• professional services like law, consulting, etc.

Legal framework

Mandate agreements are governed by the Czech Civil Code (Sections 2430–2443).
Key features:

• based on trust (fiduciary relationship)

• can be paid or unpaid

• the mandatary must act with due care

Mandatory elements of a mandate agreement

• Identification of mandator and mandatary

• Clear description of the task to be performed

• Whether acting in their own name or on behalf of the client

• Fee (if agreed)

• Obligation to inform about progress

• Right of the mandator to terminate the mandate

• Date and signatures

Common mistakes in practice

• Vague task description or unclear limits of authority

• No agreement on liability or risk

• Fee not agreed in advance (leading to disputes)

• No clause on delegation (can the task be outsourced?)

• Confusion with agency or intermediary contracts

Recommendations for mandators and mandataries

Mandator:

• Define the scope of the task and how it is to be performed.

• Ask for updates and reporting.

Mandatary:

• Understand your obligations and limits.

• Agree in advance if you want the right to appoint someone else.

Practice tip

If no fee is agreed, the mandatary is entitled to a reasonable (usual) fee. But disputes are common – it’s better to agree on the fee clearly in the contract.

Basic mandate agreement template – available for a symbolic fee

If you need a simple template for a mandate agreement (e.g. for representation, task management, asset handling), I can send it by e-mail for a symbolic fee.

The template suits standard cases and serves as a working base.
For more complex contracts (liability, confidentiality, professional representation), I’ll be happy to prepare a custom agreement.

Contact me via e-mail or form. We’ll arrange everything quickly and easily.

FINAL THOUGHTS – WHAT NOW?

A mandate agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting.