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Agency Agreement Template

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Created by:

​[Sender.FirstName][Sender.LastName][Sender.Company]​

Prepared for:

​[Client.FirstName][Client.LastName]

​[Client.Company]​

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Agency Agreement

This Agency Agreement is entered into as of May 12 by and between [Sender.Company] having its principal place of business located at 200 Gainsborough Cir Folsom, California(CA), 95630 (the “Company”) and [Client.Company] having its principal place of business located at 200 Clock Tower Pl Carmel, California(CA), 93923 (the “Agent”), both of whom agree to be bound by this Agreement.

WHEREAS, the Company offers customers certain products, as described on the document attached hereto as Exhibit A (the “Products”); and

WHEREAS, the Company and the Agent desire to enter into an agreement whereby the Agent will market and sell the Product according to the terms and conditions herein.

​NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto, the Company and the Agent (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:

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If this is an exclusive agency, which means the Agent is the Company’s only authorized agent for marketing the products in the territory, and the Company agrees not to appoint other agents in the same territory, you can add “as the Company’s sole and exclusive agent.

1. Assignment of Right

With certain limitations stated herein, the Company hereby authorizes the Agent the right to market and offer for sale the Products according to the terms and limitations stated in this Agency Agreement.

1. The Agent shall only market and offer for sale the products within the Territory, as defined in this Agreement.

2. The Company reserves the right to add to or subtract from the list of Products authorized on Exhibit A attached hereto with notice to the Agent.

The last sentence is for situations in which the Agent and the Company are working in regulated industries such as law, medicine, or immigration. For instance, if the Agent is working as a paralegal on behalf of the Company, they must agree to conduct themselves in a manner consistent with the laws of their country. If this doesn’t apply to your contract, you can remove the statement.

2. Territory

The Agent shall be authorized to market the Product in (the “Territory”).

You can include graphs and charts to detail the Agent’s responsibilities so the Agent understands their obligation to perform tasks as determined below.

3. Exclusivity

The Agent shall be the exclusive party authorized to market the Product within the Territory.

4. Trademark Rights

The Agent agrees and acknowledges the following with regard to the Company’s trademark:​

a. The Company is the sole and exclusive owner to all right, title and interest in “Trademark” or to any other trademarks associated with the Company (the “Company Trademarks”) which the Agent may utilize in performing the services herein.

b. The Company hereby grants to the Agent for the duration of this Agreement and subject to the limitations stated within this Agreement a non-exclusive, non-transferable, revocable right to use the Company Trademarks as necessary to market and offer for sale the Products within the Territory.

You can add more clauses, such as “the performance and obligations of the Agent will not infringe or violate the rights of any third party or violate any other agreement between the Parties, individually, and any other person, organization, or business or any law or governmental regulation.

Depending on what the Agent will be doing for your Company, it may be a better idea to pay the Agent a flat fee instead of a percentage rate. If you decide to do so, be sure to change the wording of this section as needed.

5. Agent Responsibilities

In marketing and offering the Products for sale in the Territory, the Agent shall:​

1. Act with diligence, devoting reasonable time and effort to fulfill the duties described herein;

2.Maintain reasonable technical and practical knowledge with regard to the Products;

3. Utilize promotional materials provided to the Agent by the Company for the purpose of marketing and selling the Products;

4.If requested by the Company, attend and participate in trade shows and conventions related to the Products;

5. Promptly respond to all communications by customers and the Company regarding the Products;

6.Reasonably assist the Company with regard to any and all collection matters as requested by the Company;

7. Prepare and maintain any reports and documentation, as requested by the Company.

6. Commission

The Company shall pay to the Agent 20% of all Net Product Sales directly from the Agent’s efforts. “Net Product Sales” shall be defined as the amount of sales revenue from any sales made by the Agent less any chargebacks, returns, or defaults by customers.

1. Should the Parties terminate this Agreement for any reason, the Company shall pay the Agent only for sales of the Products made prior to the termination date.

2. In the event that the Agent receives commission payments for orders that are subsequently refunded, charged back, or the Company otherwise fails to realize the income from such a sale, the Agent shall offset any future commissions paid by the amount by which the commissions actually paid would be reduced if the sales associated with income the Company failed to realize were never completed.

3. Payments shall be made to the Agent on or before May 12 for the period.

7. Confidentiality

1. The Agent shall not disclose to any third party any details regarding the Company’s business, including, without limitation any information regarding any of the Company’s customer information, business plans, or price points (the “Confidential Information”), (ii) make copies of any Confidential Information or any content based on the concepts contained within the Confidential Information for personal use or for distribution unless requested to do so by the Company, or (iii) use Confidential Information other than solely for the benefit of the Company.

2. Immediately upon termination of the relationship between the Company and the Agent, the Agent shall return to the Company any documents pertaining to the Company’s business or any of its trade secrets which are in the Agent’s possession.

Most Agents will be independent contractors for the Company, but they can be employees. If that’s the case, be sure to change the wording of this section as needed.

8. Term and Termination

1. This Agreement shall commence upon the date of execution and continue until either Party terminates this Agreement in writing.​

2. Upon such termination, the Agent shall cease marketing and offering for sale the Products and shall continue to abide by the obligation refrain from sharing with any third party any of the Company’s confidential information.

9. Indemnification

​

10. No Modification Unless in Writing

​

This section is for ensuring that the Agent’s obligations under this Agreement meet your standards. You can attach rubrics and visual aids as needed to establish the standards by which the Agent’s performance will be evaluated. You can remove this section if the services performed by the Agent do not require any type of inspection or approval by the Company.

If you want to have the Agent protect against losses, consider adjusting this section so it is more of a Hold Harmless clause. For example, you could replace “all legal action and costs of every kind pertaining to any violation of the law, this Agreement, or the rights of any third party by the Agent while acting pursuant to this Agreement” with “any damages resulting from any part of this Agreement such as, but not limited to, loss of revenue or anticipated profit or lost business, costs of delay, or failure of delivery, which are not related to or the direct result of a Party’s breach or negligence.

11. Applicable Law

This Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of California and subject to the exclusive jurisdiction of the federal and state courts located in Alpine County, California.

IN WITNESS WHEREOF, by execution by the parties below, this Service-Level Agreement will form a part of the Contract.

​[Sender.Company]​

​[Client.Company]

​

MM / DD / YYYY

Signature

​

MM / DD / YYYY

Signature

​[Sender.FirstName]​[Sender.LastName]​

​[Client.FirstName]​[Client.LastName]​

Exhibit A

The Products

​

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  • A simple agency agreement is a contract that empowers a person or a company to act on behalf of other person or a legal entity in specific situations. They are common in real estate, accounting, brokerage, and some other industries.

  • The most important elements of an agency agreement are the rights of the agent, the conditions under which these rights remain valid, and the compensation that the agent receives for their work. For other relevant clauses, feel free to browse our professionally made agency agreement template.

  • Whether it is a non-exclusive or exclusive agency, such contracts are legally binding. If the agreement isn’t terminated, the agent achieves the extent rights to act instead of the principal and arrange further agreements on their behalf. Depending on the field of the appliance, there may be special requirements to the agent’s personality and professional background/skills.

  • Signed agency agreements offer so-called cooling-off periods (usually, twenty-four hours after the contract is signed) to cancel the contract. In this term, engaged parties have a chance to recheck all the conditions and refuse to participate in the described relationship. If the contract is terminated during the cooling-off period, the agent is to be notified by that. Usually, a notice of rescission is used for that purpose.

  • The most common type of agency agreement is an Exclusive Right to Sell or Lease Listing Agreement. It grants a certain person or company exclusive rights to sell or lease certain property of the grantor (e.g. real estate) and get compensation when the deal goes through.

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Agency Agreement Template

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