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Newport Pagnell
Bucks
MK16 8AQ
Tel: (01908) 613545 Chancery House
199 Silbury Boulevard
Central Milton Keynes
MK9 1JL
Tel: (01908) 696002

Agency Agreements

Agency agreements are usually used by a business in the sale or marketing of goods and services. An agency agreement will say that the agent will act as an intermediary in the sale in return for the payment of commission. An agency might, for instance, introduce customers or maybe enter into contracts with customers on behalf of the business.

Agency agreements are most suitable for contracts where goods or services are supplied on a one-off basis. For suppliers wishing to supply goods or services on a regular basis a distribution agreement may be more appropriate.

Before drafting an agency agreement, suppliers must consider which type would be most suitable for them, for instance:
 

• exclusive (where only the agent represents the business and the business cannot enter into contracts with other agents)
  
  
• on a sole agency basis (where the business may not appoint other agents but may also contact customers itself)
  
  
• non-exclusive (where the business can appoint other agents and also seek customers directly).
  
  

The business should agree with the agent the basis for the commission,  e.g. on a fixed rate or percentage, and when it is to be paid.  Consideration should also be taken of European or other legislation which protects any customary arrangements in an agent’s own country and relevant to the type of goods or services concerned.

Agency agreements are a heavily regulated area. Borneos can help you to draft your agreement to ensure it complies with the regulations including:
 

• the information that the business must provide for the agent 
• the duties of both the business and the agent 
• provisions regarding termination of the contract 
• competition law
• dispute resolution
• restrictive covenants
• appointment of the agent and
• intellectual property rights

If you would like to discuss how we might help you, please:

• call any of our office numbers listed at the bottom of this page;
• contact one of our specialists direct by clicking on their name below; or
• complete our enquiry form

Members of our team specialising in this area:

Andrew Kerr, Mark Thompson

Jordan Glackin