Agency Agreement

Agency Agreement: Create a Verified Commercial Agency Contract

A verified agency agreement is a contract in which a principal appoints an agent to sell or negotiate the sale of its products or services. It sets out the agent's authority, any territory, commission and how it is paid, targets, reporting, confidentiality, any restrictions and how the agreement ends. Robot Lawyer drafts the agreement from your answers, for the law of the country or state you choose. On the Verified plan, a legal professional checks it before you sign.

CONTENTS

What Is an Agency Agreement?

An agent acts on behalf of the principal, finding customers and negotiating or concluding sales in the principal's name. Unlike a distributor, an agent doesn't buy the products. A clear agreement defines exactly what the agent can do and how they are rewarded.

When Do You Need One?

• Entering new markets
  Using a local agent to find customers.
• Sales agents
  Appointing individuals or companies to sell for you on commission.
• Acting as an agent
  You want clear terms on commission and termination.

What's Included in Your Agreement?

• The parties and products
  The principal, the agent and what the agent sells.
• Authority
  Exactly what the agent may do on the principal's behalf.
• Territory
  Any territory, or none if there is no restriction.
• Commission
  How it is calculated and when it is paid.
• Targets
  Any sales targets and what happens if they aren't met.
• Term, restrictions and termination
  How long it lasts, any non-compete or non-solicit, and how it ends.

Commercial Agents (UK Only)

In Great Britain, agents who negotiate the sale or purchase of goods for a principal are usually protected by the Commercial Agents (Council Directive) Regulations 1993. They give the agent rights to minimum notice, information and, on termination, compensation or an indemnity. A post-termination restraint is valid only if it is in writing, limited to the agent's territory or customers and lasts no more than two years.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the principal, the agent, the products and the commission.
2. Generate your agreement
   We draft a complete agency agreement.
3. Get it verified
   On the Verified plan, a qualified legal professional checks the agreement within 24 hours and makes amendments where needed. See how our documents are verified.
4. Sign it
   Both parties sign before the agent starts work.

Agency Agreement FAQs

What is the difference between an agent and a distributor?

An agent sells on the principal's behalf and earns commission. A distributor buys products and resells them for its own profit. See our Distribution Agreement.

Is an agent entitled to compensation when the agreement ends?

Under the UK Commercial Agents Regulations, often yes, even if the agreement ends naturally, unless an exception applies.

Can the agent be exclusive?

Yes. The agreement can make the agent the only agent in a territory, or keep it non-exclusive.

Create a Verified Agency Agreement

Appoint your agent on clear terms. Related documents: Distribution Agreement, Reseller Agreement, Affiliate Agreement and Non-Compete Agreement.