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Agency Agreement (Exclusive)

Agency Agreement (Exclusive)
Document Type: Microsoft Word
Build Time: 10 Min
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This Agency Agreement is used to set out the terms upon which an agent is engaged by a principal to act on its behalf on an exclusive basis. As an exclusive agent, the principal cannot appoint any one else either generally or for the specific territory, time or purpose stated in the agency agreement.

An Agent is a person who, for and on behalf of a principal, either introduces a third party to the principal by soliciting orders from the third party, or concludes contracts with the third party on behalf of the principal.

This agency agreement contemplates that the agent is a company, and a director of that company gives a guarantee and makes certain representations.

It is important to set out the powers the agent has and any limitations on those powers. Provided the agent acts within the scope of its authority, the agent will bind the principal. If the principal holds the agent out to have authority, then even if there is a limitation in the agency agreement, the principal will still be bound. Within the agency agreement the remuneration of the agent should also be clearly set out, the specific tasks the agent will perform as well as the term or period of the agency.

Warning: there will be some situations (eg. Real estate agents) where there are statutory requirements governing the form and content of the agency agreement and you should not use this template for those types of agency agreements.

 
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