An agency agreement is an agreement by which one party (principal) assigns some authority to another party (agent), so as to act on his behalf. Every now and then, the entities hire agents to represent them at different platforms. For this purpose, they can always use agency agreement templates, in order to legally and formally enter into an agency relationship.
With an agency agreement, an agent becomes a legal representative of a principal. However, it also binds the principal for all the actions of the agent. So, while drafting such an agreement, both the parties must be fully aware of all the terms and conditions of the agreement. For more details, make sure to read the complete article and check out the given below useful agency agreement templates.
Free Agency Agreement Templates
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Important things to include in an Agency Agreement
Before knowing the elements of an agency agreement, it is very important to know the situations in which an agency is created or an agency agreement is used. Some of these situations are given below:
- Hiring legal representatives.
- Hiring the services of an accountant, apart from the regular accountant of your entity.
- Real estate business.
- Outsourcing suppliers.
- Marketing and advertising.
Following are some of most important things to consider while drafting an agency agreement:
- Names, addresses, and contact details of both the agent and the principal.
- Date of the agency agreement.
- Location or place where the agreement between both the parties is signed.
- Duties and rights of both the agent and principal.
- Details of any compensations that are to be awarded to an agent for his services.
- The formal procedure for resolving any dispute.
- Duration of the agency agreement.
- Terms and conditions.
Sample Agency Agreement Templates
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Agency Agreement Template
Potential Risks of an Agency and how to mitigate such risks?
As with any type of business agreement or relationship, an agency or agency agreement is also associated with risks. One of the potential threat here is that the agent is a legal representative of a principal.
While acting on behalf of a principal, an agent can enter into a contract with any other person, without the knowledge of the principal. This way, he makes the principal fully liable for the terms and conditions of any such contract.
Similarly, if the agent is involved in some illegal activities, the principal can be held liable for all the acts of the agent. So, in order to avoid or mitigate such risks, make sure consider the given below steps:
- The objective or goals of the agency agreement must be clearly mentioned.
- Limit the liability of the principal by specifically mentioning in the agency agreement.
- The terms and conditions of the agreement must be made clear to both the parties to an agreement, and they must sign the agreement by mutual consent.
- Both the parties to the agreement must have sufficient time to read the contract in depth.
- Clearly mention the actions or situations in which the agency agreement will be breached.
- The agency agreement must be properly notarized.
- Both the parties to the agreement must retain a copy of the agency agreement.
