We’ve worked with lawyers and professional proofreaders to develop a simple agency agreement template (Word and PDF) for you to use as you scale your operations.
We’ve worked with lawyers and professional proofreaders to develop a simple agency agreement template (Word and PDF) for you to use as you scale your operations.
What’s in this template?The law of agency can be a complex topic, so let’s get fundamental for a moment to break down how agency agreements work.
An individual or business entity (principal) will seek to hire a professional (agent) to represent them to carry out a specific task or project.
Agents are given different levels of authorization to act on behalf of the principal. Here are some examples of principal, agent relationships:In most situations, the principal can perform the functions that an agent would but may not have the time or the ability to get the same results. So they hire an agent to delegate their authority.
An agency agreement is a legally binding contract between principal and agent laying out the terms and conditions of their relationship.
DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.
The law of agency can be delicate and intricate. That’s why we’ve designed a simple, customizable template for you to use in all of your agency dealings, and give you peace of mind.
Click below to download our agency contract template todayA principal divulges an incredible amount of trust in an agent to execute on what they need to do. Sometimes a principal will need to share personal information like business performance, finances, and the nature of some family relationships for the agent to carry out their job successfully.
On the flip side, an agent needs to develop the relevant experience to be trusted and compensated for their skills.
As a principal, agent relationship can be very personal or at least high stakes, disputes and conflicts can end up in nasty lawsuits and damaged reputation.
A good agency agreement captures all of the vital information from services offered, to compensation, to confidentiality, to mitigate any conflicts, and to keep all parties accountable. In the next section, we’ll break down these components in more detail.
The most essential element of an agency agreement is for the principal and agent to find common ground on what services an agent will be doing on behalf of the principal.
This requires principals to have specific goals for hiring an agent and leaning on the experience of an agent to communicate what they need to perform successfully.
Every agency agreement needs a section documenting how and when an agent will be paid for their services. It’s common practice for an agent to invoice the principal for work completed over a specific period.
A principal and agent relationship often involves disclosing sensitive information, so a confidentiality term is essential to any agency agreement. This means that the agent will need to seek permission from the principal if they need more information to fulfill their responsibilities.
All agency agreements need a termination section, which outlines how the contract can be terminated. It may be that one or all parties choose to part ways, or unforeseen circumstances come to light whereby a party becomes insolvent.
An agency contract is not legally binding without consent from the principal and agent. Signatures are legal proof that all parties acknowledge and accept the terms of the agency agreement.
The law of agency can be delicate and intricate. That’s why we’ve designed a simple, customizable template for you to use in all of your agency dealings, and give you peace of mind.
Click below to download our agency contract template today Frequently Asked QuestionsBy default, you need to select an end date for your agency agreement. However, technically speaking, there is no maximum length of time as the agency renews automatically once the end date is reached.
The length of your agency agreement comes down to the nature and industry of the agency. It’s always a good idea to define a relatively short term for your first contract to give parties an idea of what it’s like to work together. From there, you can extend your agency period with subsequent agreements.
Agency agreements can be formed verbally, written, or other types of communication. However, a signed agreement is legally binding and adds further protection and accountability for all parties involved. For that reason, we always recommend you prepare a formal agency contract signed by the principal and agent to eliminate any confusion about the nature of the relationship.
Yes, absolutely! We recognize that agreements may need to be modified depending on the needs of your client and industry. That’s why our template is available in a Word file type to make changes as needed.
If you do make significant amendments to your contract, it might be worth consulting a lawyer to review it for compliance.
– This Agency Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________ , with an address of ______________ (hereinafter referred to as the “Principal”) and ______________ with an address of ______________ (hereinafter referred to as the “Agent”) (collectively referred to as the “Parties”).
– The Parties agree that the Agent will be the representative of the Principal in performing the services set forth in this Agreement.
– During the period of this Agreement, the Agent shall have the responsibility of performing and providing the following services to the Principal (hereinafter referred to as “Services”):
– Hereby, the Principal agrees to appoint the Agent as its agent to perform the Services on behalf of the Principal.
– Hereby, the Parties agree that the Agent is not entitled to bind the Principal in any matter other than for the Services in this Agreement.
– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”) and will end on ______________ .
– Upon the end of the term of the Agreement, this Agreement will not be automatically renewed for a new term.
– Hereby, the Parties agree that the Agent will be paid by means of invoicing the Principal via the following means: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ .
– Hereby, the Parties agree that this is a non-exclusive agreement and that the Parties are not to be regarded as employer-employee.
– All terms and conditions of this Agreement and any confidential information provided by the Principal to the Agent and vice versa during the term of the Agreement must be kept confidential, unless the disclosure is required pursuant to process of law.
– Disclosing or using this information for any purpose beyond the scope of this Agreement, or beyond the exceptions set forth above, is expressly forbidden without the prior consent of the Parties.
– The Parties’ obligation to maintain confidentiality will survive termination of this Agreement and will remain in effect indefinitely.
– Hereby, the Agent agrees that any intellectual property provided to him/her by the Principal will remain the sole property of the Principal and vice versa including, but not limited to, copyrights, patents, trade secret rights, and other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, works of authorship, confidential information or trade secrets.
– The Agent will refrain from using such intellectual property upon the termination of this Agreement.
– The Principal will be responsible for paying for all the Services conducted by the Agent until the date of termination, except in the event of a breach of this Agreement by the Agent.
– Upon terminating this Agreement, the Agent will be required to return all the Principal’s products and/or any other content (if any) at his/her earliest convenience, but not beyond ______________ days.
– The Parties agree and disclose that they are fully authorized to enter this Agreement. The performances and obligations of both Parties may not violate the rights of any third party or violate any other agreement made between them and/or any other organization, person, business or law/governmental regulation.
– Under no circumstances will either party be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of, or relating to, this Agreement or the transactions it contemplates (whether for breach of contract, tort, negligence, or other form of action) in the event that such is not related to the direct result of one of the Parties’ negligence or breach.
– The Parties agree not to indemnify and hold one another harmless. This also applies to their affiliates, agents, officers, employees, and/or successors. The Parties in this Agreement hereby in addition agree to assign against all (if any) claims, liabilities, damages, losses, penalties, punitive damages, expenses, any arising reasonable legal fees and/or costs of any kind or any amount that may arise. This includes, but is not limited to, any amount which may result from the negligence of or the breach of this Agreement by the party that is indemnified, its successors and assigns that occurs in terms of this Agreement.
– This section will remain in full force and tact as well as effect, even upon the termination of the Agreement naturally, or the early termination by either of the Parties.
– In an event where any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain to be enforced in accordance with the Parties’ intention.
– The Parties agree that any amendments made to this Agreement must be in writing where they must be signed by both Parties to this Agreement.
– As such, any amendments made by the Parties will be applied to this Agreement.– The Parties are not entitled to assign the responsibilities that they have under this Agreement to anyone else unless both Parties agree to the assignment and provide such agreement in writing.
– This Agreement contains the entire agreement and understanding among the Parties hereto with respect to the subject matter hereof, and supersedes all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.
– Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to arbitration/mediation/negotiation (circle one) in accordance with, and subject to the laws of _________________ .
– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout their signatures below:
