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Agency Agreement

£39 Includes VAT

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Agency Agreement Free Samples PDF | Word

Agency Agreement - an agent sells the principle's products, goods or services for commission payments. The agreement is also known as a sales agent agreement or commission agreement.

This agreement grants the agent a defined territory within which to sell for the period of the agency contract. The territory can be of any size from a city, county, country, continent to worldwide. The agent can 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 territories once an agent has proved they can effectively promote and sell the products or services.

A further consideration is whether the agency contract should be exclusive (sole agent) 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 reasonable profit, then the more agents, the better. However, if an agent has an exclusive agreement, they may have more incentive to promote and sell the products.

This agency 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.

The agreement incorporates the Commercial Agents (Council Directive) Regulations 1993 and can be used throughout the EU and worldwide. Please Note: these regulations are now incorporated into UK law after Brexit.

The regulations are significant and are primarily designed to protect the agent's interests rather than the principal. However, even if the regulations are removed from the agreement, they still apply in the EU and the UK.

The regulations provide the following protections for the agent:

1. The agent has the right to request a written agency agreement from the principal. (This is a good reason to buy this agreement.)

2. The agent is entitled to a reasonable rate of commission, where none is expressly stated. Our agency agreement includes detailed references to commission rates, and the principal should clearly state commission rate(s) in the contract. Both parties need to have certainty in this area.

3. The agent is entitled to an indemnity if the principal ends the agreement but continues to benefit. The indemnity is usually capped at one year's commission received by the agent, averaged over the previous five years or less of the agreement.

4. However, the indemnity does not prevent the agent from seeking further damages for costs incurred in carrying out their duties under the agreement.

5. Compensation can be claimed if the principal terminates the agreement on the agent's death.

6. Finally, the agent needs to inform the principal they are seeking damages or an indemnity within 12 months of the termination of the agreement.

Our agency agreement also includes the requirement for the agent to comply with the Bribery Act 2010.

Clauses in this agency agreement include:

  • Interpretation
  • Terms of Agency
  • Commission
  • Duties and Responsibilities of the Agent
  • Duties and Responsibilities of the Principal
  • Anti-Bribery Compliance
  • Intellectual Property
  • Data Protection
  • Termination
  • Compensation & Indemnity
  • Force Majeure
  • Notices
  • General
  • Jurisdiction
  • Schedule (Products, Territory, Commission, Targets and Intellectual Property)

Customer Comments
"Had to get an agency agreement because the overseas company I was dealing with did not have any terms to give me. These did the trick. Great to be able to download it immediately." - SG Thompson

"Thank you, used agreement for all my agents saved a lot of time and money and now all on the same terms" - J Walters

Business Legal Documents CompactLaw Business Pack contains this agency agreement and other related business documents.

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