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:
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.
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