What is an Agency Agreement and what should be included in one?

An Agency Agreement is an agreement for when one party is authorizing another party to act on behalf of them. We have two different types of Agency Contract template in our template library: an Exclusive Agency Agreement and an Agency Agreement. Our templates are infinitely customizable to suit your needs. So if you need to modify our template to create a Buyer Agency Agreement, that is easily done. 

We include the following elements in our Agency Agreement templates as standard.  

  • Appointment - Who a company is appointing as a sales agent and what duties they are to perform. 
  • Term of Appointment - Dates of the appointment. 
  • Territory - What territory the agent can act in. 
  • Sales Commission - How much commission the agent is to be paid. 
  • Obligations of the Sales Agent - What the agent is required to do. I.e. using best efforts at all times to maximize sales. 
  • Obligations of the Company -  How the company should support the agent. 
  • Confidentiality - How long the agent must keep any company information confidential after the termination of the agreement. 
  • Non, Competition, Non Solicitation and Non Circumvention - The terms under which the agent cannot compete, solicit or contact any parties in an effort to circumvent the agreement. 
  • Termination - How terminating the agreement can occur. 
  • Indemnity and Limitation of Liability - When the agent or company will indemnify and hold harmless one another against any claim. 
  • Standard contract clauses - These clauses include: entire agreement, severability, amendment, waivers, delays, indulgences & omissions, notices, successors, costs, and force majeure.

What is an Exclusive Agency Agreement? 

An Exclusive Agency Agreement is slightly different to our Agency Agreement template. It can be used to create an Exclusive Buyer Agency Agreement. It has extra clauses that deal with trademarks, quotes and purchase orders that determine the company is only authorizing one agent to work on behalf of them. 

An exclusive Buyers Agency Agreement, for example, needs to define, specifically, terms and conditions that protect both sides when a company is authorizing only one entity as a buyer. As such it deals with the agent not offering goods at lower prices than the principal of the contract. Importantly, it defines the commissions and expenses that the principal will pay too. 

When should I use an Agency Agreement?

You should use an Agency Agreement in any situation where clarity is needed between two parties regarding their professional relationship as an agent and a principal. So if you are in a situation where you need to give authorization to another party to act on your behalf - or the other way round - you should cement any verbal agreement you have with them in writing. That should be in the form of an Agency Agreement. Even if you think a verbal agreement with another individual is enough, and they are trustworthy, an Agency Agreement that is written down is always going to be a better idea. 

Why should I use an Agency Agreement?

Our Agency Agreement should be used wherever you need to define a business relationship that runs on a Principal/Agent basis. The agreement ensures that the agent is legally required to act in the best interests of the principal and vice versa. In setting out the relationship clearly, both parties adhere to their side of the contract. Any work that is a product of the contract can be expected to be a better standard as both parties have known from the outset what is required of them. Any potential confusion, and therefore unproductive misunderstandings, are all but eradicated. Inefficiencies are reduced and productivity increases. 

Where and how should I use an Agency Agreement template?

Using an Agency Agreement template can be a highly effective way of producing a reliable and effective contract - and repeatedly if needed. Our templates make the process of creating a contract far quicker as just key details need to be modified, while all essential elements mentioned above are included as standard. Plus, our templates use a dynamic data format so that information can be inserted from other digital sources as and when it is required. That information can always be deemed accurate as a result. Plus, it helps to automate the process too.

Our templates are powerful tools to use alongside our app as they can help make light work of creating, signing and collaborating on an agreement. And, what is more, when using our app and templates, the final product is often far better than a contract that has been designed from scratch. Our templates ensure that all crucial elements are not only included, but also correct. 

Using our templates interactively by all parties is also an essential way to get the most out of a contract that can be. As all parties involved can collaborate on the contract from the start, they know what is expected of them in relation to the contract. Legal disputes are thus reduced as there are fewer breaches of the contract. But, should a dispute arise, the template helps make the dispute easier to resolve as all the information regarding how breaches are to be dealt with are right there.  

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