What should I include in an agency agreement?

An agency agreement should detail the agent's authority to enter into contracts on behalf of your business - is the agent appointed simply to find customers or is the agent provided with the authority to enter into contracts in specified circumstances? What territory will the agent to cover and will that agent have exclusive rights to that territory?

The agreement should also set some duties for the agent:

  • Is the agent to market the products?
  • Will there be targets to meet?
  • Can the agent be involved in competing products or is this to be restricted?
  • What is to happen should a dispute arise over the products?

Terms of the agreement will also deal with how the agent is to be paid and whether this is to be by commission.

Finally, the agreement should deal with the termination of the agency relationship. You should bear in mind that an agent may by law be entitled to compensation upon such termination again, which can be very costly.

For advice on the content of your agency agreements please call our Business Law Solicitors on freephone 0800 975 2463 or contact us by email


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20 Nov 2018



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