An agency agreement is a contract in which one party, the principal, authorizes another, the agent, to act on its behalf, usually to sell or promote its products or services. Manufacturers use one to appoint sales agents in a new region, and talent, travel and marketing agencies sign them with the clients they represent.
This page offers 37 agency agreement templates, editable and free to download. Use one as a sales agency agreement for a commissioned rep, or adapt it into an agency contract for other kinds of representation. A ready structure lets you spend your time on the terms you actually need to negotiate.
Decide early what happens to commission on deals that close after the agreement ends. That question causes more disputes than almost any other. Laws on agents and commission differ by country, so have a lawyer review the final version.
Agency relationships often sit alongside other contracts. You may also need our commission agreement templates for sales agents, artist management contract templates for talent agencies, and confidentiality agreement templates to protect client information.
Free Agency Agreement Templates
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Important things to include in an Agency Agreement
Before looking at the elements of an agency agreement, it is important to know the situations in which an agency is created or an agency agreement is used. Some of these situations are:
- Hiring legal representatives.
- Hiring the services of an accountant, apart from the regular accountant of your business.
- Real estate business.
- Outsourcing suppliers.
- Marketing and advertising.
Following are some of most important things to consider while drafting an agency agreement:
- Names, addresses, and contact details of both the agent and the principal.
- Date of the agency agreement.
- Location or place where the agreement between both the parties is signed.
- Duties and rights of both the agent and principal.
- Details of any compensations that are to be awarded to an agent for his services.
- The formal procedure for resolving any dispute.
- Duration of the agency agreement.
- Terms and conditions.
Sample Agency Agreement Templates
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Potential Risks of an Agency and how to mitigate such risks?
Like any business agreement or relationship, an agency agreement carries risks. One potential threat is that the agent is the principal’s legal representative.
While acting on behalf of the principal, an agent can enter into a contract with another person without the principal’s knowledge. This makes the principal fully liable for the terms of that contract.
Similarly, if the agent is involved in illegal activities, the principal can be held liable for all of the agent’s acts. To avoid or reduce such risks, consider the following steps:
- The objective or goals of the agency agreement must be clearly mentioned.
- Limit the liability of the principal by specifically mentioning in the agency agreement.
- The terms and conditions of the agreement must be clear to both parties, and they must sign it by mutual consent.
- Both the parties to the agreement must have sufficient time to read the contract in depth.
- Clearly mention the actions or situations in which the agency agreement will be breached.
- The agency agreement must be properly notarized.
- Both the parties to the agreement must retain a copy of the agency agreement.
More Agency Agreement Templates
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Defining Authority in an Agency Agreement
Choose terms that describe the actual agency relationship and seek appropriate legal advice. Marketing support, sales representation and authority to bind a principal are not interchangeable. Before agreeing an agency’s defined service engagement, WordNExcelTemplates’ service proposal templates can help present the proposed work and commercial assumptions for review.
- Identify the services, territory, term and any exclusivity.
- Define authority, approvals, compensation and reporting duties.
- Review conflicts, records, liability and termination arrangements.
Worked Example
Example: an agent may introduce customers but need written approval before offering a discount or signing an order. State those limits so the principal, agent and customers do not rely on different assumptions about authority.
Common Mistakes to Avoid
Avoid assuming the word “agent” grants unrestricted signing power. Review any regulated activities and local requirements.
Related Templates
- Commission Agreement Templates
- Franchise Application Form Templates
- Artist Management Contract Templates
- Franchise Agreement Templates
Frequently Asked Questions
Can the agent bind the principal?
That depends on the authority and applicable law. State the intended limits clearly and obtain advice on how they operate in practice.
How should commission be described?
Define the qualifying transaction, calculation basis, timing, records and treatment of cancellations or post-termination transactions.
