Example of Agency Agreement

An agency agreement is a legal document that outlines the terms and conditions between two parties – the principal and the agent. This agreement is designed to establish a working relationship between the two parties, setting out the details of what the agent is allowed to do on behalf of the principal.

In this article, we will take a closer look at an example of an agency agreement that you can use as a reference when creating your own agreement.


The introduction of the agreement establishes the purpose of the document, including the parties involved, the date of the agreement, and the duration of the agreement. Here`s an example of an introduction:

“This agency agreement (the `Agreement`) is made on [date] between [principal company name] (the `Principal`) and [agent company name] (the `Agent`). This Agreement shall commence on [date] and shall continue for a period of [number of months/years] unless earlier terminated in accordance with the terms of this Agreement or by mutual agreement of the parties.”

Appointment of the Agent

This section defines the role of the agent and the authority and responsibilities given to the agent by the principal. It outlines the duties that the agent is authorised to perform on behalf of the principal, such as marketing, sales, and other related activities. Below is an example of this section:

“The Principal hereby appoints the Agent as its non-exclusive agent for the purposes of marketing and selling the Principal`s [products/services] in [geographic location]. The Agent is authorised to engage in sales and marketing activities for the Principal, including but not limited to, contacting potential customers, promoting the products/services, and negotiating and executing contracts on behalf of the Principal.”

Compensation and Payment

This section outlines how the agent will be compensated for their services and how payments will be made. For example:

“The Agent will be paid a commission of [percentage] of the gross revenue generated from the sales of the Principal`s products/services. Commission payments will be made [monthly/quarterly/annually] and will be calculated and paid within [number] days of the end of each payment period.”


This section outlines the terms and conditions for terminating the agreement by either party. For example:

“This Agreement may be terminated by either party upon [number of days/weeks/months] written notice to the other party. The Principal may terminate this Agreement immediately if the Agent breaches any material provision of this Agreement. Upon termination of this Agreement, the Agent will deliver to the Principal all records, documents, and property belonging to the Principal.”


This section sets out the obligations of both parties regarding the confidentiality of any sensitive information exchanged during the course of the agreement. An example of this section is:

“The Agent agrees to maintain the confidentiality of all proprietary information belonging to the Principal, including customer lists, marketing strategies, and other trade secrets. The Agent further agrees not to disclose such information to any third party or to use such information for its own benefit or the benefit of any third party.”


This article has provided an example of an agency agreement that you can use as a reference when creating your own agreement. Remember, an agency agreement is a legal document that establishes a working relationship between two parties, and it should be tailored to meet the specific needs of the parties involved. A well-crafted agency agreement will ensure that the relationship between the principal and the agent is well-defined, and that all parties are clear on their roles and responsibilities.