Agency Agreement

If you have a business in which you want to sell products on behalf of another company you will want to enter into an agency agreement. An agency agreement will specify the Agent which sells the products for the Principal. In return for the service of selling these products the Agent receives a commission from the Principal party. Anyone who enters this type of situation must sign the Agency Agreement in accordance with the EU. The Commercial Agents Council Directive Regulations 1993 Act is required by the EU and this agreement references the laws one must adhere to.
The Agency Agreement template found here is available for download. It is quick and simple to download the document and save it for future use. The agreement can be used in England, Scotland, and Wales. There are two types of agency agreements: non-exclusive and exclusive. As you might imagine the non-exclusive agreement allows the principal party to use other agents in order to sell their goods. The difference in the agency agreement to a distribution agreement is that of the commission. A distribution agreement is between a supplier and distributor in which the distributor pays for the goods the supplier has given them. In the agency agreement the agent gets a commission for what they do sell.
There are clauses in the agency agreement which outline the situation completed. As a template the information in the document is generalised, but can be modified for your specific situation. The clauses include the definition of the goods or services being sold, the appointment terms, agent and principal obligations, how to work orders, commissions, the termination requirements, sales targets, and any confidentially requirements.
With a commission arrangement the agent generally has a specific amount of goods or services they must sell in order to keep the agreement in good standing. The sales targets will be specific to the parties involved, so this is any area that can be modified in the template. The termination section might state any sales targets not met could end the agency agreement. Thus if an agent meets the requirements an agency agreement can be extended until both parties wish to end it.