An agency agreement template is a document signed by a company for another company that has been hired to work on their behalf. The company issuing the agency agreement would be the principal and the other would be referred to as the agent company. These agreements hold legitimate value since both the companies are associated with each other legally and the agency agreement could be a part of their corporate documentation. Agency agreements are issued when a company gives its legal rights to another company or an individual to work for them as their agent. The fundamental principle for signing an agency agreement states that whatever duties or tasks the agent will perform, will be accounted for as if the principal has done the task or the duty. The most important of all the terms mentioned in the agreement is that the agent, while falling under the obligations of the agreement, must protect sensitive information related to the company.
Importance of an Agency Agreement:
An agency agreement template is one of the most important legal documents and used to bind the parties to follow the terms and conditions involved in transactions and dealings with different agencies like rental agencies, travel agencies, supply agencies and others. It can be said that this agreement is between an entrepreneur and customers/clients. Moreover, it contains relevant information like names of parties, type of dealing and transaction between clients and agency, terms and conditions of agreement and signature of parties involved in this agreement. An agency agreement should look very professional as it is an important part of business. This is because it provides you with complete assistance while dealing with legal aspects of agency transactions. By simply reading its content, you can understand what terms are crucial for you and for what terms you need the assistance of a legal expert.
Details of Agency Agreement:
The layout for a common agency agreement varies according to the type of company generating it, but the basic format for all remains the same. An agency agreement may start with the name of the company and its brief introduction. It also incorporates the clauses upon which the agent and the principal agreed together. Furthermore, it contains any additional terms and conditions proposed by any of the concerned parties. An agency agreement must mention the payment details for which the agent has been hired by the company. A section for the signatures and the dates is added at the end after both parties have gone through the sections containing the terms and conditions of the agreement. Agency agreements generally have an expiry date, which is usually the date up till which the agent has been asked to work for the company.