Agency agreement
An agency agreement: what the agent must do, how the commission is calculated, which reports are required, and where risks for the principal hide
An agency agreement records intermediation: the agent performs legal and/or factual acts in the principal’s name, or in the agent’s own name but in the principal’s interest. Without a clear subject matter and reporting rules, the dispute almost always becomes “what exactly was done” and “how much is owed.”
People also look for a mandate and a commission agreement: a mandate focuses on legal acts, and a commission agreement on deals in one’s own name. In practice an agency agreement often mixes both regimes — it is important to state expressly in whose name the agent acts.
Draft a text or check a finished agency agreement:
Structure of an agency agreement
- The parties: principal and agent, and their details
- Subject matter: the list of acts, the territory, and the term of authority
- In whose name the agent acts (the principal’s or the agent’s own)
- Remuneration: a percentage, a fixed fee, an advance, and when it accrues
- The agent’s report: form, deadline, and supporting documents
- The agent’s expenses: what is reimbursed, and against which documents
- Limits: exclusivity, non-compete, and sub-agents
- Liability, termination, and annexes
Commission and the agent’s report
The main risk in an agency agreement is a vague commission. If it is unclear which base the percentage is calculated on, and when the right to payment arises, the parties dispute it after every deal.
- The calculation base: the deal amount, the margin, or the prepayment
- When it accrues: signing, payment, or delivery
- The report deadline and the principal’s right to request source documents
- What happens to the commission if the client returns the goods or withdraws
Dangerous wording:
- “The agent provides promotion services” with no list of acts
- “Remuneration will be agreed separately”
- “A report is provided on request” with no deadline
- “The agent may engage third parties” with no rules of liability
For the principal and for the agent
The principal needs, in an agency agreement: a clear subject matter, limits on authority, reporting, and control of expenses. The agent needs a clear commission base, a payment deadline, reimbursement of agreed costs, and protection against a unilateral cut of remuneration after the deal.
If what you need is services without intermediation, a services contract is more often the right form. If you are transferring a right to claim under an existing obligation, see an assignment agreement.
Draft or check
A draft — draft an agency agreement online. A finished file — check it for risks / with AI. The other party’s edits — compare the two versions.
Common questions about an agency agreement
How does an agency agreement differ from a mandate?
A mandate is usually about legal acts in the principal’s name. An agency agreement is broader: it can include factual acts and a regime of acting “in one’s own name.”
Is an agent’s report needed?
In practice, yes: without a report it is hard to prove the scope of the acts and the commission base.
Can you work on an exclusive basis?
Yes, but exclusivity should be limited by territory, term, and the consequences of a breach — otherwise the wording is easy to challenge.
How do you check an agency agreement online?
Upload a PDF or Word file to the service: the review will show risks on the subject matter, commission, reporting, and one-sided terms.
An agency agreement online
Assemble the text from a brief, or upload a file for a review: authority, commission, report, termination.