An Agency Agreement is conjured between two parties: the principal and the agent. These agreements guard both parties' entitlements throughout the duration of the contract term. A "fiduciary" relationship is created between the parties, which means that the principal lays his trust in the agent to help his company. There are different kinds of agency contracts such as sales agreement, marketing agreement, and more. Some of the important steps you need to remember to create such an agreement are down below.
1. The Undersigned
To start your written legal agreement, the first line goes to the name of the agent, the date of the agreement, and the agent's address. The next line is for the information of the principal party or referred to as the private company, and you can also include the company's address.
The principal requests the agent to perform the specific services for the company and the agent obliges. You should include here the services that the agent will do for the company.
The date of the beginning of the contract agreement should be included here. You may also include the date of the continuation of the contract for renewal terms unless either party notifies the other party.
This is the list of the countries that are covered by the agency. These are the only countries that the agency will only give its services.
5. Obligations of the Agent
The obligations of the agent will be listed in this part. You can write here about the service agreement of the agent to fulfill its responsibilities under the agreement. You should include everything that both the agent and the principal should do for the company in order to attain success. You may write their obligations in different paragraphs or bullet points.
6. Commissions and Expenses
There should be a commission agreement of the amount the company should pay the agent. You should also add how and when the agent should be paid by the company. Include all the specific agreements of the agent and the principal about the expenses.
The details of how and when then the exclusive agreement will be terminated are written here. Include here the violations and other reasons that may result in the termination of the contract. It will depend on your agreement what are the possible things that the agent or the principal may do upon termination. According to a website called HG.org, "A principal can retract an agent's authority at any time, but maybe liable for damages if the termination violates the contract."
8. Jurisdiction and Governing Law
Both parties agree that their simple agreement is governed by or construed and enforced by the state and/or a country in which the two parties have a business.
9. Entire Agreement
Both parties recognize that all their agreements are written in this contract. If one of them wishes or want to alter, add, or modify any terms in the basic agreement, they can do so, and it should be signed by both parties.
At the very bottom, there should be the signatures of the principal and the agent and the date when they signed the official agreement.