Agency Agreement

£18.99 Includes VAT

The agreement grants the agent a defined territory within which to sell for the period of the agreement. The territory can of any size from a city, county, country, continent to worldwide. The agent could also be granted more than one territory. It is up to the principal to decide on the territory granted. Some principals grant one territory, and then offer more once an agent has proved they can promote and sell the products or services.

A further consideration is whether the agency agreement will be exclusive or non-exclusive for the particular territory. Again this is a commercial decision for the principal. If the principal has a product or service that has a low margin and requires a large volume of sales to generate a good profit, then the more agents the better. However, the counter argument to that is that if an agent has an exclusive agreement they may be more willing to work to promote and sell.

The template allows for the commission structure favoured by the principal. It also sets out clearly and in detail the responsibilities of both the agent and the principal.

This agency agreement template incorporates The Commercial Agents (Council Directive) Regulations 1993 and so can be used throughout the EU, and also worldwide.

Clauses in this agreement include:

• Interpretation
• Terms of Agency
• Commission
• Duties and Responsibilities of the Agent
• Duties and Responsibilities of the Principal
• Termination
• Compensation & Indemnity
• Force Majeure
• Notices
• General
• Jurisdiction
• Schedule (Products, Territory, Order Targets and Commission)

Reasons to buy:

It is imperative that both the principal and agent have clear written commercial terms agreed so that both parties know what to expect from their deal. Relying upon orally agreed terms or negotiations without a final written agreement could prove costly in terms of lost sales, commission and any subsequent legal action to define and enforce the commercial terms. 

Business Legal Documents - CompactLaw Business Pack contains this agency agreement form and more related business documents.