Agents Agreement format
A Sales Agency agreement is made between a company and a sales agent. This agreement is required when the company hires a sales agent to make a sale of their products and services on their behalf. This agreement protects the interests of both the company and the sales agent. It outlines the terms of sale, payment terms and other provisions governing the duties and authority of the agent. It serves as a legal document in the event of any disputes between the agent and the company.
GET FREE CONSULTATION
What is this agent agreement template for?
This agent agreement is suitable for a company (or individual) that wishes to act as sales agent for a manufacturer or supplier.
The terms of the agreement are fairly balanced, but they are biased in favour of the agent to some extent. If you are a supplier/manufacturer, you can use our document A101
Where the manufacturer/supplier (or “principal”) and the agent are in different countries, you should have the wording checked by a lawyer in the other country even if you want to have the agreement governed by the law of your country.
By the way, don’t confuse an agency agreement with a distributor agreement: an agent finds customers for their principal who then supplies the customer direct. The distributor, by contrast, buys the principal’s goods and then resells them in the agreed territory. For a distributor agreement favouring the distributor, see our document A118
What are the main issues for an agent when preparing an agreement with a supplier?
Scope of agreement. If the supplier produces a range of different products, you want to be able to sell all of them or only a limited amount? Also, what is the scope of your territory as agent? Be careful not to take on too big a product line or territory unless/until you have the team and/or infrastructure in place in order to service it.
Exclusivity. Is the agreement to be exclusive with regard to certain products and/or territory or non-exclusive? In either case, what happens if you make a sale outside the agreed territory? You need to be sure to get commission.
Commission. Both the amount of the commission and the payment terms need to be agreed – hopefully with payment of commission on a monthly or at most a quarterly basis. This should be based, ideally, on sales rather than on payments received by the principal. Apart from commission, do you get any expenses reimbursed , for example in travelling to a new territory to research the market for your supplier?
Sales targets. It is common for a supplier/manufacturer to have sales targets in the agreement. As an agent, you should be fairly conservative, at least in the initial period, so that you are confident of achieving the agreed target.
Supplier support. This can take various forms – the agreement should specify what support you need in terms of brochures, literature, training etc. Also, occasional visits from the supplier can be useful in generating sales.
Duration and Termination. Since it takes time for an agent to build up sales, you need a reasonably long contract period. And if your principal wants to terminate, he should only be allowed to do so after an initial period of, say, one year and then only on reasonable notice of, say, three months.
What detailed terms does the agency agreement template contain?
This Agency Agreement is an 8 page document with 10 main clauses covering
- definitions of key terms
- terms of appointment
- agent’s general obligations
- orders and sales
- principal’s general obligations
- intellectual property
- a general clause detailing assignment, subcontracting, notices, language, dispute resolution and governing law.
This agency agreement is for international use and it is generally compatible with EU legislation.
For more information on each of these sections, see our detailed Explanatory Notes which you will receive when you download the document from our website.
If you have any questions about a contract and/or want to see these Notes before you buy, please let us know by using our contact form
For information on signing documents see our Contract Signing page
This agency agreement is written from the agent’s point of view. If you are a principal / manufacturer, see document A101.
GET A FREE CONSULTATION
Mobile : +91 - 81221 83745
Email : firstname.lastname@example.org