Free Agency Agreement Template for Download (2024)

We’ve worked with lawyers and professional proofreaders to develop a simple agency agreement template (Word and PDF) for you to use as you scale your operations.

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Free Agency Agreement Template for Download

We’ve worked with lawyers and professional proofreaders to develop a simple agency agreement template (Word and PDF) for you to use as you scale your operations.

What’s in this template?

  • • List of services provided
  • • Scope of authority
  • • Compensation terms

Download our free agency agreement sample

Download Doc

Download PDF

What is the purpose of an agency agreement?

The law of agency can be a complex topic, so let’s get fundamental for a moment to break down how agency agreements work.

An individual or business entity (principal) will seek to hire a professional (agent) to represent them to carry out a specific task or project.

Agents are given different levels of authorization to act on behalf of the principal.

Here are some examples of principal, agent relationships:

  • • An athlete hires a sports agent to manage all of their contracts and marketing opportunities.
  • • A retired couple hires a real estate agent to sell their family home.
  • • An eCommerce brand hires a marketing agency to advertise on their behalf.

These are just a few of many examples that exist in the agency world.

In most situations, the principal can perform the functions that an agent would but may not have the time or the ability to get the same results. So they hire an agent to delegate their authority.

An agency agreement is a legally binding contract between principal and agent laying out the terms and conditions of their relationship.

Grab a copy of our Agency
Contract Forms

The law of agency can be delicate and intricate. That’s why we’ve designed a simple, customizable template for you to use in all of your agency dealings, and give you peace of mind.

Click below to download our agency contract template today

Why is the contract of agency important?

A principal divulges an incredible amount of trust in an agent to execute on what they need to do. Sometimes a principal will need to share personal information like business performance, finances, and the nature of some family relationships for the agent to carry out their job successfully.

On the flip side, an agent needs to develop the relevant experience to be trusted and compensated for their skills.

As a principal, agent relationship can be very personal or at least high stakes, disputes and conflicts can end up in nasty lawsuits and damaged reputation.

A good agency agreement captures all of the vital information from services offered, to compensation, to confidentiality, to mitigate any conflicts, and to keep all parties accountable. In the next section, we’ll break down these components in more detail.

Elements of an agency agreement

Below are five key elements of an agency agreement template.

1. Services

The most essential element of an agency agreement is for the principal and agent to find common ground on what services an agent will be doing on behalf of the principal.

This requires principals to have specific goals for hiring an agent and leaning on the experience of an agent to communicate what they need to perform successfully.

2. Compensation

Every agency agreement needs a section documenting how and when an agent will be paid for their services. It’s common practice for an agent to invoice the principal for work completed over a specific period.

3. Confidentiality

A principal and agent relationship often involves disclosing sensitive information, so a confidentiality term is essential to any agency agreement. This means that the agent will need to seek permission from the principal if they need more information to fulfill their responsibilities.

4. Termination

All agency agreements need a termination section, which outlines how the contract can be terminated. It may be that one or all parties choose to part ways, or unforeseen circumstances come to light whereby a party becomes insolvent.

5. Signatures

An agency contract is not legally binding without consent from the principal and agent. Signatures are legal proof that all parties acknowledge and accept the terms of the agency agreement.

Grab a copy of our Agency
Contract Template

The law of agency can be delicate and intricate. That’s why we’ve designed a simple, customizable template for you to use in all of your agency dealings, and give you peace of mind.

Click below to download our agency contract template today

Download Doc

Download PDF

Frequently Asked Questions

FAQ about our Agency Agreement Template

By default, you need to select an end date for your agency agreement. However, technically speaking, there is no maximum length of time as the agency renews automatically once the end date is reached.
The length of your agency agreement comes down to the nature and industry of the agency. It’s always a good idea to define a relatively short term for your first contract to give parties an idea of what it’s like to work together. From there, you can extend your agency period with subsequent agreements.

Like any contract, an agency agreement may be terminated in the following circumstances:

  1. A principal or agent breaches the conditions of the agreement.
  2. Any party gives written notice to another party based on the agreed notice period.
  3. An agent or principal becomes bankrupt or insolvent as a result of the work related to the contract.

Agency agreements can be formed verbally, written, or other types of communication. However, a signed agreement is legally binding and adds further protection and accountability for all parties involved. For that reason, we always recommend you prepare a formal agency contract signed by the principal and agent to eliminate any confusion about the nature of the relationship.

An exclusive agency agreement implies that either:

  1. A principal has exclusivity to an agent’s services, meaning that the agent can not perform similar work with another principal.
  2. An agent has exclusive obligations to a principal—meaning that the principal cannot engage with other agents to carry out similar work.

The majority of agency agreements are non-exclusive by nature. However, some agency agreements are exclusive, depending on how demanding the work is.

Yes, absolutely! We recognize that agreements may need to be modified depending on the needs of your client and industry. That’s why our template is available in a Word file type to make changes as needed.
If you do make significant amendments to your contract, it might be worth consulting a lawyer to review it for compliance.

document preview

Agency Agreement

Agency Agreement

Parties

– This Agency Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________, with an address of ______________ (hereinafter referred to as the “Principal”) and ______________ with an address of ______________ (hereinafter referred to as the “Agent”) (collectively referred to as the “Parties”).

– The Parties agree that the Agent will be the representative of the Principal in performing the services set forth in this Agreement.

List Of Services Provided And Their Prices

– During the period of this Agreement, the Agent shall have the responsibility of performing and providing the following services to the Principal (hereinafter referred to as “Services”):

  1. ___________________________
  2. ___________________________
  3. ___________________________
  4. ___________________________
  5. ___________________________
  6. ___________________________
  7. ___________________________
  8. ___________________________
  9. ___________________________
  10. ___________________________

Appointment

– Hereby, the Principal agrees to appoint the Agent as its agent to perform the Services on behalf of the Principal.

Scope Of Authority

– The list of Services in this Agreement limits the Agent’s authority to bind the Principal.

– Hereby, the Parties agree that the Agent is not entitled to bind the Principal in any matter other than for the Services in this Agreement.

Term

– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”) and will end on ______________ .

–Upon the end of the term of the Agreement, this Agreement will not be automatically renewed for a new term.

Compensation

– Hereby, the Parties agree that the Agent will be paid by means of invoicing the Principal via the following means:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

Relationship Of The Parties

– Hereby, the Parties agree that this is a non-exclusive agreement and that the Parties are not to be regarded as employer-employee.

Confidentiality

–All terms and conditions of this Agreement and any confidential information provided by the Principal to the Agent and vice versa during the term of the Agreement must be kept confidential, unless the disclosure is required pursuant to process of law.

– Disclosing or using this information for any purpose beyond the scope of this Agreement, or beyond the exceptions set forth above, is expressly forbidden without the prior consent of the Parties.

– The Parties’ obligation to maintain confidentiality will survive termination of this Agreement and will remain in effect indefinitely.

Intellectual Property

– Hereby, the Agent agrees that any intellectual property provided to him/her by the Principal will remain the sole property of the Principal and vice versa including, but not limited to, copyrights, patents, trade secret rights, and other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, works of authorship, confidential information or trade secrets.

– The Agent will refrain from using such intellectual property upon the termination of this Agreement.

Termination

–This Agreement may be terminated in the event that any of the following occurs:

  1. Immediately, in the event that one of the Parties breaches this Agreement.
  2. At any given time by providing written notice to the other party ______________ days prior to terminating the Agreement.
  3. By the Principal in the event of the Agent’s breach of this Agreement and/or due to insolvency, bankruptcy and/or liquidation.
  4. By the Agent in the event of the Principal’s breach of this Agreement and/or due to insolvency, bankruptcy and/or liquidation.

–The Principal will be responsible for paying for all the Services conducted by the Agent until the date of termination, except in the event of a breach of this Agreement by the Agent.

– Upon terminating this Agreement, the Agent will be required to return all the Principal’s products and/or any other content (if any) at his/her earliest convenience, but not beyond ______________ days.

Representation And Warranties

–The Parties agree and disclose that they are fully authorized to enter this Agreement. The performances and obligations of both Parties may not violate the rights of any third party or violate any other agreement made between them and/or any other organization, person, business or law/governmental regulation.

Limitation Of Liability

– Under no circumstances will either party be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of, or relating to, this Agreement or the transactions it contemplates (whether for breach of contract, tort, negligence, or other form of action) in the event that such is not related to the direct result of one of the Parties’ negligence or breach.

Indemnity

– The Parties agree not to indemnify and hold one another harmless. This also applies to their affiliates, agents, officers, employees, and/or successors. The Parties in this Agreement hereby in addition agree to assign against all (if any) claims, liabilities, damages, losses, penalties, punitive damages, expenses, any arising reasonable legal fees and/or costs of any kind or any amount that may arise. This includes, but is not limited to, any amount which may result from the negligence of or the breach of this Agreement by the party that is indemnified, its successors and assigns that occurs in terms of this Agreement.

– This section will remain in full force and tact as well as effect, even upon the termination of the Agreement naturally, or the early termination by either of the Parties.

Severability

– In an event where any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain to be enforced in accordance with the Parties’ intention.

Governing Law

– This Agreement shall be governed by and construed in accordance with the laws of ______________.

Amendments

–The Parties agree that any amendments made to this Agreement must be in writing where they must be signed by both Parties to this Agreement.

– As such, any amendments made by the Parties will be applied to this Agreement.

Assignment

– The Parties are not entitled to assign the responsibilities that they have under this Agreement to anyone else unless both Parties agree to the assignment and provide such agreement in writing.

Entire Agreement

– This Agreement contains the entire agreement and understanding among the Parties hereto with respect to the subject matter hereof, and supersedes all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

Alternative Dispute Resolution

– Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to arbitration/mediation/negotiation (circle one) in accordance with, and subject to the laws of _________________ .

Signature And Date

– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout their signatures below:

Agent

Name: ______________________

Signature: ___________________

Date: _______________________

Principal

Name: ______________________

Signature: ___________________

Date: _______________________

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Grab a free example of our Agency Contracts Template

The law of agency can be delicate and intricate. That’s why we’ve designed a simple, customizable template for you to use in all of your agency dealings, and give you peace of mind.

Click below to download our agency contract template today

Download Doc

Download PDF

Free Agency Agreement Template for Download (2024)

FAQs

How do you create an agency agreement? ›

Creating an Agency Agreement
  1. Expectations of the agency agreement.
  2. Specific services of the agent.
  3. Geographical location of the agreement.
  4. Payment amount and terms.
  5. The process of dispute resolution.
  6. An agreement on governing law.
  7. Duration of the partnership agreement.

What is a simple agency agreement? ›

A simple agency agreement is a contract that empowers a person or a company to act on behalf of other person or a legal entity in specific situations. They are common in real estate, accounting, brokerage, and some other industries.

What is an example of an agency agreement? ›

When a manager gives a worker permission to complete a specific task while they are employed, that is an example of an agency agreement in action. Here, a contract outlining the various responsibilities of the agent may be drafted.

What is agency in contract law PDF? ›

important enough to be second in the series (after contracts). The Restatement. defines agency as “the fiduciary relation which results from the manifestation of. consent by one person to another that the other shall act on his behalf and subject. to his control, and consent by the other so to act.”

What are the 4 main types of agency agreements? ›

Types of agency agreements
  • Exclusive agency agreements. Exclusive agency agreements are commonly used for the sale of residential property. ...
  • Sole agency agreements. A sole agency agreement is similar to an exclusive agency agreement. ...
  • General listing / open agency agreement. ...
  • Multiple listing. ...
  • Auction agency agreement.
12 Jun 2018

What is a valid agency agreement? ›

An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.

Do agency agreements need to be in writing? ›

The agency agreement between a principal and the agent must always be in writing with clear terms and conditions with explicit language limiting the principal's liability if the agent does something that wasn't authorized. This protects you personally and professionally.

What is required for an agency agreement to be binding? ›

"The general rule of agency is that a principal is bound by the acts of an agent when that agent is acting within the scope of his or her ordinary or apparent authority."

Which of the following must an agency agreement have? ›

Types of Buying Agency Agreements

These agreements must include an expiration date, a fair housing statement, a blockbusting statement, and a signature line for both the broker and the seller.

Why must a written agency agreement be completed? ›

It is important to ensure the agreement is prepared, signed and served in accordance with the law. An agent is not entitled to any commission or expenses for services performed for a client unless: a written agency agreement has been entered into for the services.

Which two parties are involved in an agency agreement? ›

An agency agreement is a relationship between a principal and an agent, where the principal authorises the agent to engage third parties in legal relationships.

What is Agent Agreement form? ›

An Agency Agreement, also sometimes called an Agent Agreement, is a document between two parties, a principal, and an agent. With this agreement, the principal gives the agent the authority or capacity to do certain things on behalf of the principal.

What are the 5 types of agency? ›

The five types of agents include: general agent, special agent, subagent, agency coupled with an interest, and servant (or employee).

What are the general rules of agency? ›

General Rules of agency. The law of agency is based on the following two general rules: The principal is bound by the acts of his agent and can get the benefit of such acts as if he had done them himself. The acts of the agent shall, for all legal purposes, be considered to be the acts of the principal.

What is the difference between agent and agency? ›

An agency is an organization, company or bureau that provides service to another. An agent is the person authorized by another to act on his behalf.

Do I have to pay an estate agent if I don't sell? ›

A If you withdraw from a sale, it is normal to be charged to cover the costs – such as advertising – that an agent has already incurred. And it is also normal to have to pay some or all of the estate agent's commission but only if the contract you signed contained a “ready, willing and able purchaser” clause.

What is the difference between sole agency and exclusive agency? ›

Under an exclusive agency, the agent will be entitled to the commission agreed, whether or not the agent is the effective cause of the sale. Where the agency is a sole agency, the agent would not be entitled to the commission if the seller is the effective cause of the sale.

Can I list my property with more than one agent? ›

The simple answer is yes. The real question is why would you want to? Two agents are usually employed either because one agent has failed to secure a sale or because another promises you they have a buyer waiting. Sometimes this is true.

What are the benefits of an agency agreement? ›

The usual benefit of an agency agreement is that the principal, who created the product or service, gains access to new markets without employing additional local sales staff.

What is an agency clause? ›

An agency clause may be inserted into a publishing contract between an author and a publisher. In essence, a typical agency clause provides that the agent may receive royalty payments on behalf of the author and has authority to act in the name of the author with respect to the contract.

What is Export agency agreement? ›

All Exams Help - October 04, 2021. 0. Export agency agreement. Agency agreement is a legal document which establishes salable relationship between the star and the agent. It incorporates the conditions mutually agreed upon by the concerned parties for the conduct of business.

What is the difference between an agency agreement and a distribution agreement? ›

A distribution agreement has similarities to an agency agreement. However, the main difference is that the distributor enters into the contract with the end-user (customer) on his own behalf and the manufacturer is not involved, except by way of manufacturer's guarantee or warranty and product liability.

What are the four ways in which an agency relationship can be created? ›

An agency relationship is created in the following manners: Express Agreement, Implied from the Situation, Estoppel, by Necessity, or Ratified by the Principal.

Who is the employer of an agency worker? ›

If you're an agency worker, your contract is with the employment agency. They place you with a company ('hiring organisation') for a temporary period of work ('assignment'). When you're on an assignment, the hiring organisation is responsible for directing your work.

What makes a contract unenforceable? ›

Additionally, there are eight specific criteria a court will use to determine whether or not a contract is unenforceable: lack of capacity, coercion, undue influence, misrepresentation and nondisclosure, unconscionability, and public policy, mistake, and impossibility.

What is a legally enforceable contract? ›

A contract is an agreement between parties, creating mutual obligations that are enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

Are all agreements legally binding? ›

Not all contracts must be in writing to be legally binding. In addition, not all written agreements are legally binding. For an agreement to constitute a legally binding contract, a number of criteria must be met, such as offer, acceptance, and consideration.

What is actual authority of an agent? ›

Actual authority is an agent's power to act on behalf of a principal, because such power was expressly or impliedly conferred. Express actual authority is when a principal directly tells the agent that they have the authority to take certain action.

What the Real Estate Agents Act 2008 says about agency agreements? ›

Section 126 of the Real Estate Agents Act 2008 is clear – no written agency agreement means no entitlement to commission. The agency agreement must be in place before you do any real estate work.

What is agency estoppel? ›

Agency by Estoppel: If a principal (NOT THE AGENT) holds out to a third party that another is authorized to act on the principal's behalf, and the third party deals with the other person accordingly, the principal may not later deny that the other was the principal's agent for purposes of dealing with that third ...

How do you end an exclusive agency agreement? ›

Normally, the exclusive period is 90 days. If the exclusive agency period exceeds 90 days and the property is not sold, you can terminate the agreement by providing 30 days written notice to the agent at the end of the 90 days.

What is the maximum period of time that a person can be an assistant agent? ›

Certificates of registration as an assistant agent will be issued for a maximum duration of four years, with no extensions of time or further renewals beyond that time.

What documentation must be provided to the vendor before the vendor signs the agency agreement? ›

Provide a copy of the agency agreement guide (if it's a residential sale) You must give the vendor a copy of the New Zealand Residential Property Agency Agreement Guide [PDF, 275 KB] before they sign the agreement and ask them to confirm in writing that they have received it.

Are agents liable? ›

An agent is not generally liable for contracts made; the principal is liable. But the agent will be liable if he is undisclosed or partially disclosed, if the agent lacks authority or exceeds it, or, of course, if the agent entered into the contract in a personal capacity.

Who is an agent in contract of agency? ›

—An 'agent' is a person employed to do any act for another, or to represent another in dealings with third person. The person for whom such act is done, or who is so represented, is called the 'principal'.

What is an exclusive agency? ›

Exclusive Agency Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker.

What is Form A in Dubai? ›

Form A - Agent/Seller Agreement

This is perhaps the most common type of form, which serves as a contract between the agent and the seller of the property. This form legally mandates the agent to act on the seller's behalf by marketing the property and managing interested buyers.

How an agency is created? ›

An agency is created by express appointment when the principal appoints the agent by express agreement with the agent. This express agreement may be an oral or written agreement between the principal and the agent.

What is the most common type of agency? ›

The most common agency relationships are: Buyer's Agency; Seller's Agency; Dual Agency.

What is an example of agency? ›

Examples of Agency

Choosing a career. Groups joining a social movement. Picking a spouse (also called affective individualism). Selecting a dessert off a menu.

What are the 4 types of agents? ›

There are four main categories of agent, although you are unlikely to need the services of all of them:
  • Artists' agents. An artist's agent handles the business side of an artist's life. ...
  • Sales agents. ...
  • Distributors. ...
  • Licensing agents.

What is necessary to create an agency? ›

"No consideration is necessary to create an agency". (a) Express Appointment- An agency is created by express appointment when the principal appoints the agent by express agreement with the agent. This express agreement may be an oral or written agreement between the principal and the agent.

What are the 3 types of agent authority? ›

There are three different ways in which the insurer authorizes the agent to represent it.
  • Express Authority. Express authority is the authority that an agent has in writing in the contract with the insurer that the agent represents. ...
  • Implied Authority. ...
  • Apparent Authority.

What is most common form of agency structure? ›

Hierarchical structure

A hierarchical structure, also known as a line organization, is the most common type of organizational structure.

What are the types of agencies? ›

Types of Agencies
  • Branding. These firms widen the marketing scope beyond your products or services. ...
  • Direct marketing. ...
  • Digital marketing/new media. ...
  • Social media. ...
  • Shopper activation/shopper marketing. ...
  • Public relations.

Who can be a agent? ›

As between the principal and third persons, any person may become an agent, but no person who is not of the age of majority and sound mind can become an agent, so as to be responsible to the principal according to the provisions in that behalf herein contained.

Does an agency agreement have to be in writing? ›

The agency agreement between a principal and the agent must always be in writing with clear terms and conditions with explicit language limiting the principal's liability if the agent does something that wasn't authorized. This protects you personally and professionally.

What is an agency explain the methods of creating an agency? ›

Agency system is very popular in the current business scenario. There are two parties in the agency system one is the principal and another the agent. An agent is a person acting on behalf of his principal. It's a connecting link between the principal and the third party.

Why must a written agency agreement be completed? ›

It is important to ensure the agreement is prepared, signed and served in accordance with the law. An agent is not entitled to any commission or expenses for services performed for a client unless: a written agency agreement has been entered into for the services.

Why do we need contract of agency? ›

Contract of the agency is a legal relationship, where one person appoints another to perform on the transactions on his behalf. The person who appoints the other to take care of his transactions is the principal. Whereas, the person who looks after the transaction of the principal is the agent.

What is required for an agency agreement to be binding? ›

"The general rule of agency is that a principal is bound by the acts of an agent when that agent is acting within the scope of his or her ordinary or apparent authority."

What are the 7 elements of a contract? ›

For a contract to be valid and recognized by the common law, it must include certain elements— offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.

Which of the following must an agency agreement have? ›

Types of Buying Agency Agreements

These agreements must include an expiration date, a fair housing statement, a blockbusting statement, and a signature line for both the broker and the seller.

What are the 5 types of agency? ›

The five types of agents include: general agent, special agent, subagent, agency coupled with an interest, and servant (or employee).

What is the most common method of creating an agency? ›

The most common method of creating an agency relationship is by appointment (oral or written). Generally, a principal's appointment of an agent need not comply with specific formalities (for example, a writing) to be effective.

What are the three ways agency can be created? ›

An agency relationship is created in the following manners: Express Agreement, Implied from the Situation, Estoppel, by Necessity, or Ratified by the Principal.

How it is an agency agreement created by the parties themselves? ›

An agency agreement is a relationship between a principal and an agent, where the principal authorises the agent to engage third parties in legal relationships. Each party to the agreement will have certain obligations. You should ensure your agreement is drafted effectively and is legally binding on all parties.

Do I have to pay an estate agent if I don't sell? ›

A If you withdraw from a sale, it is normal to be charged to cover the costs – such as advertising – that an agent has already incurred. And it is also normal to have to pay some or all of the estate agent's commission but only if the contract you signed contained a “ready, willing and able purchaser” clause.

What is Export agency agreement? ›

All Exams Help - October 04, 2021. 0. Export agency agreement. Agency agreement is a legal document which establishes salable relationship between the star and the agent. It incorporates the conditions mutually agreed upon by the concerned parties for the conduct of business.

What are the general rules of agency? ›

General Rules of agency. The law of agency is based on the following two general rules: The principal is bound by the acts of his agent and can get the benefit of such acts as if he had done them himself. The acts of the agent shall, for all legal purposes, be considered to be the acts of the principal.

How many parties are there in a contract of agency? ›

Principal and agent involve in three main parties in relationship, they are: The Principal, The Agent, and a Third Party. Agent: Agent is define in the Section 182 of the Indian Contract Act, that a person employed to do any act for another or to represent another in dealing with third person.

What are the elements of agency? ›

Elements: (1) Principal/Agent relationship, (2) some kind of authority (actual, apparent, inherent, estoppel, ratification), and (3) contractual obligation entered into by agent with third party.

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