Legal Definitions - procuring agent

A procuring agent is an individual or entity authorized to act on behalf of a principal (another person or company) with the specific purpose of finding, obtaining, or bringing about a particular transaction, relationship, or outcome with a third party. Their primary role involves actively seeking out and connecting the principal with the necessary party or resource to complete a desired deal or objective.

Here are some examples to illustrate the concept of a procuring agent:

• Real Estate Sales: Imagine a homeowner who wants to sell their property. They hire a real estate agent and sign an agreement that gives the agent the authority to market the house, show it to potential buyers, and negotiate offers on their behalf. The agent successfully finds a buyer who agrees to the terms and completes the purchase.

  This illustrates a procuring agent because the real estate agent's core function is to actively find and secure a buyer (the third party) for the homeowner (the principal), thereby bringing about the sale transaction. Their compensation is typically tied to the successful procurement of that buyer.

• Business Merger & Acquisition: A mid-sized manufacturing company decides it wants to acquire a smaller, specialized technology firm to expand its product line. They engage an investment banking firm to identify suitable acquisition targets, initiate contact, and facilitate the initial stages of negotiation.

  In this scenario, the investment banking firm acts as a procuring agent. Their principal is the manufacturing company, and their specific task is to find and bring about the acquisition (the transaction) with a suitable technology firm (the third party).

• Talent Recruitment: A large corporation is looking to fill a highly specialized executive position that requires a unique skill set and extensive experience. They contract with an executive search firm (often called a "headhunter") whose job is to identify, vet, and present qualified candidates from other companies for the role.

  The executive search firm functions as a procuring agent. Their principal is the corporation, and their role is to actively procure (find and secure) a suitable executive candidate (the third party) to fill the specific job opening.